TMI Blog2023 (10) TMI 709X X X X Extracts X X X X X X X X Extracts X X X X ..... hether there existed a reasonable ground for not depositing the said amount is a matter which can be looked into only by the learned Trial Court. The Income Tax Department in the counter-affidavit has not disputed that the TDS amount has been deposited, although after a delay of 12 months. This Court is of the view that pendency of BIFR proceeding against the company due to industrial sickness of the company, delay in deposit of the TDS amount within the stipulated time was a reasonable cause. In view of the reasonable cause, Section 278 AA of the Income Tax will apply. Thus entire criminal proceeding is quashed against the petitioners. - HON'BLE MR. JUSTICE GAUTAM KUMAR CHOUDHARY For the Petitioners : Ms. Diksha Dwived ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... aint filed by Income Tax Officer (TDS Ward), Jamshedpur, the amount had been deposited after the stipulated time of seven days of the following month. 4. The main plea of the petitioner is that the entire TDS amount has been deposited even before the issuance of receipt of notice. The delay was not intentional since 1991 BIFR proceeding was pending against the company and due to industrial sickness of the company, the TDS amount could not be deposited within the stipulated time. 5. Learned counsel for the petitioner in support of her submission has relied upon the judgment reported on 2022 SCC Online Jhar 537 wherein the criminal prosecution has been quashed on similar fact situation and the SLP has been dismissed by the Hon ble Supre ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ount is an offence under the Act and has been made punishable. It, therefore, cannot be said that the prosecution against a company or its Directors in default of deducting or paying tax is not envisaged by the Act. 8. The Income Tax Department in the counter-affidavit has not disputed that the TDS amount has been deposited, although after a delay of 12 months. 9. This Court is of the view that pendency of BIFR proceeding against the company due to industrial sickness of the company, delay in deposit of the TDS amount within the stipulated time was a reasonable cause. In view of the reasonable cause, Section 278 AA of the Income Tax will apply. Under the aforesaid facts and circumstance, the impugned order as well as the entire c ..... X X X X Extracts X X X X X X X X Extracts X X X X
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