TMI Blog2024 (4) TMI 713X X X X Extracts X X X X X X X X Extracts X X X X ..... etitioners, therefore, the authorities ought to have been taken into consideration same, particularly for the reasons that the petitioners-company has suffered the I.B. proceeding and the restriction imposed during the COVID-19 pandemic, the petitioners case is directly covered by the judgments cited in the case of Dev Multicom Pvt. Ltd. [ 2022 (3) TMI 1038 - JHARKHAND HIGH COURT] and M/s. D.N. Homes Pvt. Ltd. Khurda another [ 2023 (11) TMI 447 - ORISSA HIGH COURT] because the prosecution indeed has been initiated by the opposite parties against the petitioners after having received the TDs amount along with the interest. Therefore, the entire proceeding arising qua the petitioners stands quashed. - HONOURABLE SHRI JUSTICE SIBO SANKAR MIS ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... belated period by the petitioners, still the statutory offence under Section-276B r/w Section-278B of the Act has been admittedly committed by the petitioners. Admittedly, the petitioners have delayed in depositing the amount collected on behalf of the govt. ranging from 15 days to 394 days. Since the delays are beyond one year, the competent authority has rightly accorded sanction under Section-279(1) of the Act for prosecuting the petitioners for having committed the offences U/Ss 276B r/w Section-278B of the Act. 4. Mr. Sidhartha Ray, learned Senior Counsel appearing for the petitioners, inter alia, contended that due to general sluggishness in the market price of iron ore etc , the petitioners-company suffered huge loss. Apart from that ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er reg.- xxx xxx xxx xxx 2. xxx xxx xxx xxx 3. Identification and processing of potential prosecution cases: 3.1 The following categories of offences shall be processed for launching prosecution:- (i) Offences u/s 276B: Failure to pay taxes deducted at source to the credit of Central Government Cases, where amount of tax deducted is Rs. 25,000 or more, and the same is not deposited even within 12 months from the date of deduction, shall be processed for prosecution in addition to the recovery steps as may be necessary in such cases. The authority for processing the prosecution under this section shall be the officer having jurisdiction over TDS cases. The prosecution shall preferably be launched within 60 days of such detection. If any such ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hurda and another vs. Union of India passed in CRL REV No. 408 of 2023, the relevant paragraphs of which reads as under: 20. The legislative intent would be well discernable when simultaneously, we glance at the provision of section 201 and 221 of the IT Act which says that penalty is not leviable when the Company proves that the default was for good and sufficient reasons , whereas, the expression used in section-278AA is reasonable cause . The legislature has carefully and intentionally used these different expressions in the situations envisaged under those provisions. 22. Coming to the case before us, the prosecution has been launched against the petitioners for delay in deposit of the collected TDS for the Financial Year, 2020-21 (Acco ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... apatra, learned Senior Standing Counsel appearing for the Income Tax opposed the prayer made by the petitioners and contended that the distress financial condition of the petitioners company and the COVID-19 pandemic situation cannot be taken as an alibi for late deposit of TDS into the Government account, as the amount was collected on behalf of the Government and due diligence was supposed have been taken for depositing the tax amount within the stipulated time frame. Mr. Mohapatra further contends that the COVID-19 pandemic restriction measures were only imposed during the month of March, 2020. However, the delay in remittance is not limited to that period. Mr. Mohapatra further contends that the Circular dated 24.04.2008 relied upon by ..... X X X X Extracts X X X X X X X X Extracts X X X X
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