TMI Blog2023 (9) TMI 70X X X X Extracts X X X X X X X X Extracts X X X X ..... in accordance with section 248B and as alleged has wilfully and deliberately not deposited TDS - HELD THAT:- As the Court finds that there is no denial that the commencement of the operation of the petitioner company is with effect from January, 2016 and when the notice was received by the petitioner, the petitioner has filed reply disclosing that the TDS amount along with interest has already been deposited on 11.5.2016 itself whereas sanction order was passed on 14.02.2018 and the prosecution was launched on 13.04.2018 i.e. after much delay of depositing the said TDS amount along with the interest. It is not a case that the prosecution was filed earlier and thereafter the T.D.S amount was deposited. No penalty proceeding initiated agai ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... izance dated 02.05.2018 arising out of Economic Offence Complaint Case No. 17 of 2018, pending in the court of learned Special Court, Economic Offence, Ranchi is quashed. - HON BLE MR. JUSTICE SANJAY KUMAR DWIVEDI For the Petitioner :- Mr. Parth Jalan, Advocate Ms. Shivani Jaluka, Advocate For Income Tax Deptt. :- Mr. R.N. Sahay, Advocate For the State :- Mr. Gaurav Raj, Advocate Heard Mr. Parth Jalan, the learned counsel appearing on behalf of the petitioners and Mr. R.N. Sahay, the learned counsel appearing on behalf of the Income Tax Department. 2. This petition has been filed for quashing of the entire criminal proceeding including the order taking cognizance dated 02.05.2018 arising out of Economic Offence ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... se is registered under section 276(B) read with section 278(B) of the Income Tax Act, 1961. He submits that business operation of the petitioner s firm started in the month of January, 2016 and the petitioner s firm was not knowing about the TDS for the last quarter of the financial year 2015-16. He submits that as soon as the provision of TDS has come in the knowledge of the petitioner, the petitioner immediately consulted his chartered accountant who had disclosed the procedure of deducting TDS and depositing with the Income Tax Department. He submits that thereafter the petitioner has taken TAN Number for deducting TDS and depositing the same with the Income Tax Department. He submits that notice was received by the petitioner and the sa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the interpretation of the provisions made in the Income Tax Act, have been made that once the failure is there, the proceeding can go on. He submits that the petitioner has been provided full opportunity and in view of that the criminal proceeding cannot be quashed. He further submits that in the anticipatory bail application it has come that the petitioner is ready to face the trial and thereafter the present case has been lodged. On this ground he submits that the case is fit to be dismissed. 6. In view of the above submission of the learned counsels appearing on behalf of the parties, the Court finds that there is no denial that the commencement of the operation of the petitioner company is with effect from January, 2016 and when the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 184 ITR 47 (AP). Paragraph no.10 of the said judgment is quoted below: Therefore, wilfulness contemplates some element of evil motive and want to justification. In CIT v. Patram Dass Raja Ram Beri [1981] 132 ITR 671, a Full Bench of the Punjab and Haryana High Court, considering the term wilful failure occurring in section 276CC of the Income-tax Act, held that willfulness certainly brings in the element of guilt and thus the requirement of mens rea. Our Supreme Court in Gujarat Travancore Agency v. CIT , has observed that the creation of an offence by statute proceeds on the assumption that society suffers injury by the act or omission of the defaulter and that a deterrent must be imposed to discourage the repetition of ..... X X X X Extracts X X X X X X X X Extracts X X X X
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