2020 (3) TMI 1119

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....URABLE DR.JUSTICE G.JAYACHANDRAN For the Petitioners : Mr.AN.Ramanathan For the Respondent : No appearance ORDER Aggrieved by the penal action initiated by the Income Tax Department against the petitioners for non remittence of TDS in time, the present criminal original petitions are filed under Section 482 of Cr.P.C., to quash the criminal proceedings in C.C.No.23 of 2016 dated 27.11.2015 ....

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....granted sanction to prosecute. Pursuant to the said sanction, in haste and without authority, complaint has been filed and pending in C.C.No.23 of 2016 for the assessment year 2013-2014. It has to be quashed, since the sanction to prosecute is violative of principles of natural justice. 3.Admittedly, in this case, the petitioners Company M/s.Vasan Health Care Private Limited has not remitted the....

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....is case, the petitioners though deducted tax at source, not paid the same within the time prescribed. This action of initiating criminal prosecution after obtaining sanction from the appropriate authority cannot be termed as violative of principles of natural justice. 5.It is relevant at this juncture to refer the case of Madhumilan Syntex Ltd., and another Vs. Union of India and another reporte....

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....39;'[T]here is no provision in the Income Tax Act imposing criminal liability for delay in deduction or for non-payment in time. Under Section 276-B, delay in payment of the income tax is not an offence.'' According to the learned Judge, such a provision is subject to penalty under Section 201(1) of the Act. 48.We are unable to agree with the above view of the High Court. Once a sta....