TaxTMI 
TaxTMI 
2023 (7) TMI 409
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....eby and whereunder, cognizance has been taken under Sections 276B and 278B of the Income Tax Act, 1961. 2. The allegation against the petitioners as set out in the complaint is that petitioner no. 1 had deducted TDS amount of Rs. 17,99,629/- for the financial year 2014-15 (assessment year 2015-16) but had failed to deposit the same in time to the credit of Central Government as per the provisions of Income Tax Act, 1961. The chart with respect to quarter and the amount so deposited is set out which reads as under:- Quarter Form type Chln. No. Deductee Ser. No. PAN PAN ---- Due Date Date of Deposit TDS/TCS Deposited Last Payment Principal Amount Interest on Late Pmnt Date of Deduction Period of Delay....
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....titioner no. 1, IARC and HDFC Bank Limited for the purpose of operation and maintenance of TRA. 4. In sum and substance, under the aforesaid facts and circumstances, the petitioners were tied down by the condition imposed by TRA agreement and, therefore, there was some delay in depositing the TDS amount in the Central Government. 5. The second plea is that as per the circular bearing F. number 255/339/79-IT(Inv.) dated 28.05.1980, complaint should be filed within sixty days but this complaint has been filed after two years after the TDS amount with interest was already deposited. 6. Reliance has been placed on 2022 SCC Online Jhar 537. It is submitted that no specific averment has been made regarding the complicity of the Director.....
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.... 24.04.2008. Para (g) reads as under: "Prosecutions under Section 276B should not normally be proposed when the amount involved, and or the period of default, is not substantial and the amount in default has also been deposited in the meantime to the Credit of the Government. No such consideration will, of course, apply to levy of interest under Section 201(1A)." 10. Relying on this circular, it is submitted that there was no criminality on the part of the petitioner as the amount had been credited in the account of interest before issuance of notice. Lastly, it is submitted that Section 278-AA of the Act specifically provides that no person shall be punishable for any failure referred to in the said provisions if he proves that....
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.... (TDS) through Range Head (excluding the additional time taken to dispose off compounding application filed, if any) [Refer Para 4.15 (g) Preferably within 30 days of receiving approval u/s 279(1) (Refer Para 4.19) 2. 276BB -do- -do- -do- 5.2 The time lines given above should be followed as far as possible. However, any deviation from the time lines shall not render prosecution proceedings barred by limitation. The Pr. CCIT/ CCIT (TDS) should monitor progress of the cases identified for processing for prosecution particularly cases in which the timelines have not been followed." In consonance with the guidelines, the notice for prosecution after default was served upon the petitioner-Company for default for the....
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....ner has made out its case under Section 278AA of the Act that he was prevented by sufficient cause for depositing such amount to the credit of the Central Government? 17. A specific plea has been taken in Para-15 of the petition that as a result of restructuring the debt by IARC, petitioner no. 1 had lost all control over utilization of its fund and payments to be made. 18. Further due restrictions were put in place by TRA agreement, the petitioner no. 1 was not in a position to take instant and prompt decision as all payments have to be rectified by IARC. The department has not taken any stand on this and controverted this part of the averment made in the petition in its counter affidavit. It has been argued on behalf of the Departme....