Mechanical Approval for TDS Prosecution Set Aside for Non-Application of Mind

G M Infinite Dwelling India Pvt Ltd. Vs CIT (TDS) (Karnataka High Court) Sanction for Prosecution under Section 276B r/w Section 278B — Requirement of Application of Mind, Reasonable Cause, and Limits of Criminalisation of TDS Defaults Statutory Framework Involved 1. Section 276B — Failure to Pay Tax Deducted at Source Section 276B provides for criminal prosecution where a person fails to pay to the credit of the Central Government: tax deducted at source under Chapter XVII-B, or tax payable under section 115-O(2). The offence is punishable with: rigorous imprisonm...