AI Overview...
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Delay in TDS Payment Beyond 12 Months - Courts have generally held that if the TDS amount is paid with interest within the prescribed period, no offence under Section 276B of the Income Tax Act is established, even if there is a delay exceeding 12 months in crediting the amount. For instance, in Maithon Power Limited VS State of Jharkhand - Jharkhand, the court noted that the TDS was paid within the required time, and the delay was minimal, considering the interest paid, thus not constituting an offence. Similarly, in INDO ARYA CENTRAL TRANSPORT LIMITED VS COMMISSIONER OF INCOME TAX (TDS), DELHI -1 - Delhi, the delay was deemed reasonable due to the company's explanation, and no offence was found as the amounts were eventually paid with interest.
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Reasonable Cause & Payment with Interest - Courts recognize that delays caused by reasonable causes, especially when the TDS is paid with interest, do not amount to offences. In M/ s Aditya Institute of Technology and Management vs The State of Andhra Pradesh - Andhra Pradesh, the court found no offence as the educational institution paid the TDS along with interest after delay, which was accepted as a reasonable cause.
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Prosecution and Responsibility - Prosecution under Section 276B requires proof that the responsible person willfully failed to deposit TDS. In Kalanithi Maran VS Union of India Through Secretary Ministry of Finance, North, New Delhi - Madras, liability was contested unless it could be proven that the individual was responsible for the failure. Moreover, in Good News Channel Pvt. Ltd. , Represented by its Managing Director Ashwin Dev VS A. K. Subramanian - Madras, the court emphasized that the trial should be completed within six months, and the mere delay beyond 12 months does not automatically lead to prosecution if the amount was paid with interest and the responsible person exercised due diligence.
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Statutory Requirements & Notices - Certain legal notices are mandatory for prosecution under Section 276B, and failure to adhere to procedural requirements can be a defense, as discussed in Income Tax Officer VS Roshni Cold Storage Private Limited - Madras.
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Offense Exemptions & Due Diligence - The courts have also considered whether the accused exercised due diligence. In Hemant Mahipatray Shah VS Anand Upadhyay - Bombay, the emphasis was on proving that the accused had no knowledge of the offence or exercised all due diligence, which can negate liability.
Analysis & Conclusion:
A delay of more than 12 months in paying TDS can lead to prosecution under Section 276B if the delay is willful and without reasonable cause. However, courts have consistently held that if the TDS amount is eventually paid along with interest, and the delay is explained as reasonable or due to circumstances beyond control, no offence is established. Responsibility of the person responsible for the delay must also be proven; mere delay without proof of culpability does not suffice. Procedural compliance, such as issuing mandatory notices, is crucial for prosecution. Overall, the key factors are whether the delay was justified, whether the amount was paid with interest, and whether the responsible individual exercised due diligence.
Search Results for "Delay of more than 12 Months in Paying Tds Offence"
2022 0 Supreme(Jhk) 700 • India - Jharkhand
SANJAY KUMAR DWIVEDI
The court also noted that interest for the delay of one day in payment of TDS amount had been paid to the department. ... Ratio Decidendi: The court held that the TDS amount was paid within the required time, and the delay in crediting the amount ... court also considered the provisions of Section 95 of the Indian Penal Code, which states that an act causing slight harm is not an offence ... She further submits that the there is no delay of one day rather there is delay#HL_E....
2018 0 Supreme(Del) 135 • India - Delhi
SANJIV KHANNA, CHANDER SHEKHAR
The company accepted the default and delay in deposit of TDS but contended that it constituted a reasonable cause for the failure ... Fact of the Case: The petitioner company sought relief from an order sanctioning prosecution for non-deposit of TDS ... Section 276B and Section 278B of the Income Tax Act, 1961, which deal with the prosecution for non-deposit of Tax Deducted at Source (TDS ... in deposit of TDS did not exceed the prescribed period of twelve months. ... ... 3.1 The de....
2024 Supreme(Online)(AP) 211 • India - High Court of Andhra Pradesh
VENKATA JYOTHIRMAI PRATAPA, J
within time, asserting no offence committed as amounts were eventually paid with interest - Court found reasonable cause for delay ... (Paras 12, 23) ... ... Facts of the case: ... The Petitioners, an educational institution, deducted ... They paid the amounts with interest after the delay. ... b) The Petitioners have not committed any offence much less the alleged offence.c) Respondent No.2 specifically admits that the amounts have been paid along with the late payment interest. ......
2017 0 Supreme(Pat) 377 • India - Patna
SANJAY PRIYA
(Paras 1 to 8, 12 to 22, 26 to 31) ... (1996) 218 ... Owing to the delay in payment, the petitioner while paying the said sum also deposited interest amounting to j 23,595/- as required under Section 201 (1A) of the Act. ... 12. ... The Commissioner of the Income Tax (TDS), Patna, considering the facts involved in the case, accorded sanction under Section 279(1) of the Act for launching prosecution for the offence committed by the accused under Section 276 B of the Act. ... Accused Nos....
1998 0 Supreme(Mad) 953 • India - Madras
V.KANAGARAJ
The court noted that the accused-7 company had been paying its advance tax in huge amounts very promptly and that its contribution ... The Trial Court's finding on the charge under section 420 IPC was well-founded, as the ingredients of the offence were not made out ... V Thiruvengadathan, which held that such a notice is mandatory for an offence under section 276B and that the managing director or ... Thus, such a statutory notice as contemplated under section 2(35)(b) is mandatory only for offence under section 276B in....
2016 0 Supreme(Bom) 114 • India - Bombay
S.C.DHARMADHIKARI, R.D.DHANUKA, B.P.COLABAWALLA
By section 2(23A), a foreign company is defined to mean a company which is not a domestic company – Any person responsible for paying ... A person paying interest or any other sum to a non-resident is not liable to deduct tax if such sum is not chargeable to tax under the I.T. Act. ... ... [(4A) No order assessing the income and determining the sum of tax payable thereon shall be made under sub-section (4) after the expiry of nine months from the end of the financial year in which the return under sub-section (3) is furnished: ... Provid....
2019 0 Supreme(Mad) 1022 • India - Madras
G.K.ILANTHIRAIYAN
Decision: The Criminal Original Petition was dismissed, and the trial Court was directed to complete the trial proceeding within six months ... The petitioners argued that they had remitted the TDS amount and the assessment was completed, hence no offence had been committed ... Issues: Whether the petitioners' failure to deposit TDS amount within the stipulated period constituted an offence under the ... Considering the facts and circumstances of the case, the trial Court is directed to complete the tr....
2024 0 Supreme(Bom) 720 • India - Bombay
PRITHVIRAJ K. CHAVAN
Section 141 (1), that is, they will have to prove that when the offence was committed they had no knowledge of the offence or that they exercised all due diligence to prevent the commission of the offence.” (Emphasis added) 12. ... be the “Principal Officer” who has been made responsible, under Section 204 (iii) of the I.T Act, for paying the tax. ... The offence in the present case being an offence under Section 276B of the I.T Act would, therefore, imply that the “f....
2018 0 Supreme(Mad) 1027 • India - Madras
M.DURAISWAMY
the Income Tax Act, 1961, holding him liable for prosecution under Section 276B of the Act for the company's failure to deposit TDS ... not be held liable for prosecution under Section 276B without proof that he was responsible for the company's failure to deposit TDS ... the Income Tax Act, 1961, holding him liable for prosecution under Section 276B of the Act for the company's failure to deposit TDS ... ... (viii) Prosecution has been initiated for huge delay which runs into more than 12 mo....
• India - Consumer
RAM SURAT RAM MAURYA, BHARATKUMAR PANDYA
with interest @ 9% per annum from respective date of transfer of money to it till the date of payment to complainant, within two months ... Act, 2019 – Sections 2(47), 100, 38(6), 38(9) – Contract Act, 1872 – Section 17 – Limitation Act, 1963 – Section 17 – Economic offence ... – Embezzlement under Bank Officers – KYC norms not followed – Complainant lodged criminal complaint with Economic Offences Wing ... Central Bank of India is directed to pay Rs.25 crores with interest @9% per annum from the respective date of transfer of the money t....
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