https://www.taxtmi.com/caselaws?id=442448 Criminal prosecution for failure to deposit TDS was considered unsustainable where the deducted tax with interest had already been paid before sanction for prosecution and before the complaint was filed. The Court treated prior deposit, together with the absence of any penalty proceeding, as material to the issue of wilful default and held that continuation of the prosecution in such circumstances amounted to abuse of process. The reasoning reflects the principle that penal consequences in TDS matters are directed at culpable non-compliance, not a default that has been remedied before criminal action is launched. The criminal proceeding and cognizance order were quashed. en-us Tue, 22 Aug 2023 00:00:00 +0530 Wed, 11 Feb 2026 12:42:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=442448 Criminal prosecution for failure to deposit TDS was considered unsustainable where the deducted tax with interest had already been paid before sanction for prosecution and before the complaint was filed. The Court treated prior deposit, together with the absence of any penalty proceeding, as material to the issue of wilful default and held that continuation of the prosecution in such circumstances amounted to abuse of process. The reasoning reflects the principle that penal consequences in TDS matters are directed at culpable non-compliance, not a default that has been remedied before criminal action is launched. The criminal proceeding and cognizance order were quashed. Case-Laws Income Tax Tue, 22 Aug 2023 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=442448