Madras HC Quashes TDS Delay Prosecution – No Mala Fide, Only Staff Lapse

Sengoda Gounder Educational and Charitable Trust Vs ITO (Madras High Court) Petitioners, M/s. Sengoda Gounder Educational & Charitable Trust and its trustees, faced prosecution u/s 276B r/w 278AA  before the Judicial Magistrate, Coimbatore. The allegation was that while running Sri Shakthi Institute of Engineering & Technology, they deducted tax at source but failed to remit it to the Government account within prescribed time. The default continued for nearly seven months, whereas the law required remittance within 6–7 days. Trust argued before the High Court that: Delay was neithe...