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Mere delay in TDS deposit in time is offense sufficient to attract Section 276B
Case Law Details
- Case Name
- Golden Gate Properties Ltd Vs DCIT (Karnataka High Court)
- Appeal Number
- Only available for paid members
- Date of Judgement/Order
- Only available for paid members
- Related Assessment Year
- 2011-12, 2012-13
- Courts
- All High Courts, Karnataka High Court
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Golden Gate Properties Ltd Vs DCIT (Karnataka High Court)
Section 278AA makes it clear that in order to get over the penal consequences that follow on account of non-payment of tax deducted at source, it is open for the accused persons to come clean of the said charge by showing reasonable cause for failure to deposit the said amount. In the light of this provision, contentions urged by the learned counsel for the petitioners cannot be accepted. Since the material placed on record prima facie discloses that the petitioners have deducted tax at source but failed to credit the s...
The Sec 276B says if a person fails to pay the tax deducted at source as required or under the provisions Chapter XVII-B, he shall be liable to imprisionment.
Here the emphasis of this setion is on the failure to pay. The words used is “fails to pay”. That means the TDS has not been paid, if the accusd pays theTDS, whether in time or delayed he becomes “Not failed to pay” which is opposite of “fails to pay”. With payment the prosecution u/s 276B should not apply. But I do not see this argurment by learned advocates of accused. I do not know why this not explored.