M/S. Kashvi International PVT.LTD. vs. Union Of INDIA
Held
The Court held that the delay in depositing TDS was primarily due to COVID-19 pandemic restrictions, which constituted a sufficient explanation. Relying on previous judgments of the Orissa High Court, the Court decided to quash the proceedings.
Facts
The petitioners are seeking to quash a criminal case where cognizance was taken for offences under Sections 276B/276BB of the Income Tax Act. The prosecution was initiated for delayed deposit of Tax Deducted at Source (TDS) and Tax Collected at Source (TCS) amounts, with delays ranging from 1 to 84 days.
Key Issues
Whether the delay in depositing TDS due to COVID-19 pandemic restrictions is a reasonable cause that warrants quashing of criminal proceedings under the Income Tax Act?
Sections Cited
Section 276B, Section 276BB, Section 279(1), Section 482 Cr.P.C., Section 178AA
AI-generated summary — verify with the full judgment below
THE HIGH COURT OF ORISSA AT CUTTACK CRLMC No.2622 of 2024
(In the matter of an application under Section 482 of the Criminal Procedure Code, 1973)
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M/s. Kashvi International Pvt. Ltd. & another
……. Petitioners
-Versus-
Union of India
……. Opp. Party
For the Petitioners : Mr. Rudra Prasad Kar, Senior Advocate, with
Mr. Pranaya Kumar Mishra, A.N. Ray,
N. Swain and H.B. Jena, Advocates
For the Opp. Party : Mr. Subash Chandra Mohanty,
Senior Standing Counsel (Income Tax) Mr. Avinash Kedia,
Junior Standing Counsel (Income Tax)
CORAM:
THE HONOURABLE SHRI JUSTICE SIBO SANKAR MISHRA
_________________________________________________________
Date of Hearing: 26.11.2024: Date of Judgment: 23.12.2024 _________________________________________________________
S.S. Mishra, J.
The judgment continues below.
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Reproduced from the public record of the Orissa High Court. Verify against the court's own copy before relying on it. Income tax judgments are on bharattax.net.