Yash Marothia Vs Union of India (Orissa High Court)
In Yash Marothia vs. Union of India, the petitioner challenged the order dated 22.02.2023 by the Additional Chief Judicial Magistrate (Special Court), Cuttack, which took cognizance of offenses under Sections 276B and 276BB of the Income Tax Act. The Revenue alleged that the petitioner failed to deposit deducted TDS of ₹59,02,093 and collected TCS of ₹57,27,898 for the financial year 2019 within the stipulated timeframe, with delays ranging from 1 to 173 days. In defense, the petitioner cited disruptions caused by COVID-19 but affirmed that the amounts, along with interest, were subsequently deposited. Despite this, the Revenue proceeded with the complaint, leading to the present challenge.
The Orissa High Court, relying on its previous ruling in Sree Metaliks Limited vs. Union of India, found the petitioner’s case to be covered under similar circumstances. The Court noted that the petitioner had adequately explained the delay and had already remitted the amounts with interest, making the prosecution unnecessary. Additionally, Circular No. F No 285/90/2008-IT(Inv-I)/05 dated 24.04.2008 supported the petitioner’s case. Since the Income Tax Department did not dispute the applicability of the Sree Metaliks judgment, the Court quashed the proceedings against the petitioner.
