Bombay HC Quashes Prosecution of Hubtown Ltd. Directors for TDS payment delay

Hemant Mahipatray Shah and another Vs Anand Upadhyay and another (Bombay High Court) Bombay High Court dismissed the criminal prosecution of Hemant Mahipatray Shah and another director of Hubtown Ltd. for delayed TDS deposit under sections 276B and 278B of the Income Tax Act. The prosecution was quashed because the TDS, along with interest under section 201(1A), had already been deposited. The court highlighted that, as per CBDT Circulars dated 28th May 1980 and 24th April 2008, prosecution should not be initiated when tax is deposited. Additionally, no notice was issued by the Assessing Offic...