Aditya Institute of Technology And Management Vs State of Andhra Pradesh and Others (Andhra Pradesh High Court)
Introduction: In a notable ruling, the Andhra Pradesh High Court has quashed the criminal proceedings against the Aditya Institute of Technology and Management (AITM) regarding the belated deposit of Tax Deducted at Source (TDS). This decision was made under Section 276B of the Income Tax Act, 1961, which pertains to the failure to deposit TDS within the stipulated timeframe. The court’s decision was influenced by the reasonable cause provision under Section 278AA, providing relief to the educational institution.
Background of the Case: The petitions were filed by AITM under Section 482 of the Code of Criminal Procedure, seeking the quashment of proceedings in C.C. Nos. 31, 32, and 33 of 2018. These cases were registered under Section 276B of the Income Tax Act due to the delayed deposit of TDS for the assessment years 2014-15, 2015-16, and 2016-17. During these years, AITM had deducted TDS amounts of ₹32,82,250, ₹21,31,332, and ₹10,85,795, respectively, but failed to credit these amounts to the Central Government’s account within the required timeframe. Consequently, the institution also paid late payment interest of ₹2,72,841, ₹1,86,743, and ₹43,279 under Section 201(1)(a) of the Income Tax Act.
