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IN THE HIGH COURT OF ORISSA AT CUTTACK
SIBO SANKAR MISHRA
Sree Metaliks Limited – Appellant
Versus
Union of India – Respondent
| Table of Content |
|---|
| 1. petitioners seek quashing of criminal complaint. (Para 1 , 2) |
| 2. arguments about delayed tds deposits and legal defenses. (Para 3 , 4 , 5 , 6 , 7 , 8 , 9) |
| 3. court reviews arguments and explanations. (Para 10) |
| 4. court quashes criminal proceedings. (Para 11) |
S.S. Mishra, J.
2. The case against the opposite parties put forth in the statutory complaint filed by the opposite party no.1 is that the petitioners have violated the provisions of Sections-276B and 278B of the Act by not depositing the TDS amount for the Financial Year 2019-20 within the statutory period prescribed under law and delay caused by them remained unexplained.
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 at the instance of one of the financial creditor, a proceeding under Section-7 of the Insolvency & Bankruptcy Code, 2016 was initiated against the petitioner company. The I.B. proceeding was admitted on 30.01.2017 and resolution plan of the resolution applicant was approved on 07.11.2017. After approval of the resolution
The prosecution for delays in depositing TDS cannot proceed when the amounts were eventually paid with interest, and valid explanations for the delays were provided.
Prosecution for delayed TDS deposits under Income Tax Act may be quashed when reasonable causes are established; the recent CBDT circular allows for compounding such offences.
The main legal point established in the judgment is that the timing of TDS payment, the liability of the petitioners under Sections 276(B) and 278(B) of the Income Tax Act, and the interpretation of ....
Prosecution for delayed TDS deposits during COVID-19 was deemed unwarranted as the pandemic constituted a 'reasonable cause' for non-compliance.
Prosecution under Section 276B of the Income Tax Act requires proof of failure to remit TDS without reasonable cause, which the petitioners successfully established.
Where compounding of offence is permissible, jurisdiction of High Court under Section 482 Cr.P.C. may not be necessarily invoked by petitioner.
The main legal point established in the judgment is the importance of balancing the interests of both parties and considering legal submissions in prosecution proceedings under the Income Tax Act.
The court affirmed the applicability of the Supreme Court's extension of limitation during the pandemic to compounding applications, asserting that discretion in such matters must be exercised judici....
The court affirmed that amendments to the Income Tax Act permit TDS deposit extensions up to the return filing date, emphasizing adherence to legislative intent in tax compliance cases.
Prosecution for delayed T.D.S. compliance is not warranted if the obligation is ultimately fulfilled, emphasizing that mere delay does not equate to malicious conduct.
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