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IN THE HIGH COURT OF ORISSA AT CUTTACK
D.DASH
D.N. Homes Pvt. Ltd., Khurda – Appellant
Versus
Union of India – Respondent
| Table of Content |
|---|
| 1. factual background of the case. (Para 1 , 2 , 3) |
| 2. arguments presented by petitioner. (Para 4 , 5 , 6) |
| 3. analysis of maintainability of petition. (Para 8 , 10 , 11) |
| 4. discussion on reasonable cause and legal interpretation. (Para 13 , 14 , 19 , 20) |
| 5. court's final observations and judgment. (Para 22 , 23 , 24 , 26) |
| 6. conclusion on the case with critical legal implications. (Para 28 , 30) |
JUDGMENT :
D.Dash, J.
The Petitioners, by filing this Revision under section-397 read with section-401 of the Criminal Procedure Code; 1973 (for short hereinafter referred to as ‘the Cr.P.C.’) have called in question the legality and propriety of an order dated 02.02.2023 passed by the learned Additional Chief Judicial Magistrate (Special Court), Cuttack in 2(CC) Case No.04 of 2023.
2. On 13.01.2023 the Opposite Party represented by the Assistant Commissioner of Income Tax (TDS), Bhubaneswar filed a complaint alleging commission of offence punishable under section 276B of the Income Tax Act (for short ‘the IT Act’) by the Petitioner No.1, the Private Limited Company, as named and the Petitioner No.2 its Principal Officer-cum-Managing director arraigning them as the accused persons.
Th
Prosecution for delayed TDS deposits during COVID-19 was deemed unwarranted as the pandemic constituted a 'reasonable cause' for non-compliance.
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.
Prosecution under Section 276B of the Income Tax Act requires proof of failure to remit TDS without reasonable cause, which the petitioners successfully established.
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 ....
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.
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.
There shall not be any penalty leviable under Section 271C of Income Tax Act, 1961 on mere delay in remittance of TDS after deducting the same by concerned assessee.
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