Absolute Homes Pvt. Ltd. Vs ITO (Madras High Court)
In the case of Absolute Homes Pvt. Ltd. Vs ITO, the petitioner challenged a communication dated January 5, 2024, which initiated prosecution under Sections 276B/276BB of the Income Tax Act for the late remittance of Tax Deducted at Source (TDS). The petitioner acknowledged that TDS had not been remitted on time but asserted that the amounts were subsequently paid along with penalties and interest. Despite submitting responses to earlier notices, the petitioner claimed the authorities failed to consider these replies before issuing the new notice.
The respondent’s counsel contended that the notice was merely a show cause, and the department would review the petitioner’s replies before making any decision regarding prosecution. The petitioner argued that the new notice was barred by limitation, given that the TDS issue dated back to the fiscal year 2012-13, and no show cause notice had been received prior to January 2024. Despite the petitioner’s compliance, the Madras High Court found no grounds to interfere with the prosecution process, stating that it was the respondent’s responsibility to evaluate the replies and decide on further action. Consequently, the writ petition was dismissed, affirming the authority’s discretion in the matter.
