IN THE HIGH COURT OF KARNATAKA AT BENGALURU

DATED THIS THE 17^TH DAY OF DECEMBER, 2025

BEFORE

THE HON'BLE MR. JUSTICE S.R.KRISHNA KUMAR

WRIT PETITION NO.21787 OF 2024 (T-IT)

BETWEEN:

1. M/S G M INFINITE DWELLING INDIA PVT LTD.,

A COMPANY INCORPORATED UNDER

THE COMPANIES ACT 1956,

HAVING OFFICE AT NO.6, G M PEARL, BTM LAYOUT,

I STAGE, I PHASE,

BENGLAURU - 560 068.

REPLRESENTED BY ITS DIRECTOR

SRI JAWED HUSSAIN,

S/O LATE SRI. GULAM RASOOL,

AGED ABOUT 47 YEARS

2. SRI. GULAM MUSTAFA

DIRECTOR OF M/S G M INFINITE

DWELLING INDIA PVT LTD

Digitally signed by

AASEEFA PARVEEN S/O LATE SRI GULAM RASOOL

Location: HIGH AGED ABOUT 55 YEARS

COURT OF

RESIDING AT NO. 66

KARNATAKA

3RD MAIN, 15TH CROSS

6TH SECOTR HSR LAYOUT

BANGALORE - 560 102.

3. SRI. JAWED HUSSAIN

DIRECTOR OF M/S G M INFINITE

DWELLING INDIA PVT LTD

S/O LATE SRI GULAM RASOOL

AGED ABOUT 47 YEARS

RESIDING AT NO. 1/1

4^TH CROSS,

MADIWALA NEW EXTENSION, BANGALORE - 560 068.

…PETITIONERS (BY SMT. VANI H.,ADVOCATE)

AND:

1. THE COMMISSIONER OF INCOME TAX (TDS), HMT BHAVAN, NO. 59 BELLARY ROAD, GANGANAGAR, BENGALURU - 560 032.

2. THE DEPUTY COMMISSIONER OF INCOME TAX TDS CIRCLE 1(1)

HMT BHAVAN, NO. 59 BELLARY ROAD, GANGANAGAR, BENGALURU - 560 032.

…RESPONDENTS (BY SRI. ARAVIND V. CHAVAN, ADVOCATE)

THIS W.P. IS FILED UNDER ARTICLES 226 AND 227 OF THE CONSTITUTION OF INDIA, PRAYING TO QUASH THE ORDER BEARING DIN AND ORDER NO. ITBA/COM/F/17/2024- 25/1065319712(1) DTD. 31.05.2024 PASSED BY THE R-1 UNDER SECTION 279(1) OF THE ACT VIDE ANNX-F AND ETC.

THIS PETITION, COMING ON FOR ORDERS, THIS DAY, ORDER WAS MADE THEREIN AS UNDER:

CORAM: HON'BLE MR. JUSTICE S.R.KRISHNA KUMAR

ORAL ORDER

In this petition the petitioners seeks for the following reliefs:

"a. Issue a writ of certiorari quashing the order bearing DIN & Order No.ITBA/COM/F/17/2024-25/1065319712(1)

dated 31.05.2024 passed by the first respondent under Section 279(1) of the Act vide Annexure-F, b. Issue a writ of certiorari quashing the Criminal Case registered as CC Nos.199/2024 and 200/2024 filed by the second respondent on the files of the Special Court for Economic Offences, Bengaluru in which the summons dated 8.7.2024 vide Annexure-G, Annexure-G1 and Annexure-G2 are issued to petitioners, c. Pass such other Writ or direction as this Hon'ble Court deems fit to grant in the facts and circumstances of the present case."

2. A perusal of the material on record will indicate that for the assessment year 2016-2017, the petitioner deducted tax at source (TDS) and remitted the said amount to the credit of the Central Government by 17.08.2016, after 7 months along with penal interest.

Subsequently, on 14.01.2020, the second respondent issued a notices to the petitioners seeking explanation as to why prosecution proceedings should not be recommended against the petitioners on account of the delayed payment deduction of TDS by the petitioners. The petitioners having submitted replies dated 20.01.2020 and 28.01.2020, the first respondent issued show cause notices dated 15.03.2024 and 30.04.2024 to which the petitioners submitted detailed replies dated 16.02.2024 and 02.05.2024, interalia contending that the reasonable cause for delayed payment of TDS was on account of demonetization policy and subsequent GST implementation as also the COVID-19 pandemic on account of which the company faced financial loss and cash flows where cash flow was badly affected and huge monies had to be borrowed from NBFC's by way of debentures to run the business activities. It is submitted on instructions that the petitioners also requested time to produce additional documents in support of its claim.

3. Pursuant to the aforesaid notices and replies, the respondent proceeded to pass the impugned order dated 31.05.2024 granting sanction for prosecution under Section 276B read with Section 278B of the Income Tax Act, aggrieved by which the petitioners are before this Court by way of the present petition.

4. Per contra learned counsel for the respondents would reiterate the various contentions urged in the statement o