Delayed TDS remittance after staff maternity leave, 'reasonable cause' u/s278AA accepted; prosecution u/s276B quashed. In prosecution for offence under s.276B r/w s.278AA of the Income-tax Act for delayed remittance of tax deducted at source, the dominant issue was whether ...
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In prosecution for offence under s.276B r/w s.278AA of the Income-tax Act for delayed remittance of tax deducted at source, the dominant issue was whether criminal proceedings should be quashed on the ground of "reasonable cause" under s.278AA. The HC found that the delay was not wilful but arose due to the responsible staff proceeding on maternity leave, and that the deductor subsequently remitted the TDS and thereafter complied without further default; treating this conduct as negating culpability warranting prosecution, it quashed the proceedings. The SC, exercising jurisdiction under Art.136, found no ground to interfere and dismissed the petition.
Delay was condoned. The petition was considered under Article 136 of the Constitution of India. After hearing counsel for the petitioner(s), the Court declined to exercise its discretionary jurisdiction, holding: "We see absolutely no reason to interfere in the order passed by the High Court, in exercise of our jurisdiction under Article 136 of the Constitution of India." Accordingly, the petition was dismissed along with any pending application(s).
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