Law: Income Tax Act, 1961

Section: 276B,194C

Section 276B, read with section 194C, of the Income-tax Act, 1961 and section 482 of the Code of Criminal Procedure, 1973 - Offences and prosecution - Failure to pay tax to credit of Central Government under Chapter XIID or XVIIB - Petitioner-company paid different amounts to contractors engaged for carrying out work, but failed to deduct tax at source under section 194C while making payments - A complaint under section 276B was filed against petitioner for contravention of provisions of section 194C which was sought to be quashed by petition under section 482 on ground of non-applicability of section 194C - Whether in instant case when offence complained of was merely a technical offence, then extraordinary power for quashing criminal proceedings could not be exercised by Court - Held, yes CASES REFERRED TO State of Haryana v. Ch. Bhajan Lal AIR 1992 SC 604 [Para 4] and Raj Deo Sharma v. State of Bihar JT 1994 (7) SC 317 [Para 6]. JUDGMENT 1. By this petition under section 482 of the Criminal Procedure Code, 1973, the petitioners seek quashing of the proceedings emanating from the complaint filed by the respondent under section 276B of the Income-tax Act, 1961 ('the Act'), on account of their failure to deduct TDS on payments made to the contractors. 2. The petitioner No. 1 is a private limited company incorporated under the Companies Act. Petitioner Nos. 2 to 5 were the directors and were also in charge of and responsible to petitioner No. 1 for the conduct of its day-to-day business. In the year 1982, petitioner No. 1 paid different amounts to the contractors for carrying out the contract of stitching, embroidery and finishing, etc. According to the provisions of section 194C of the Act, tax at 2 per cent was deductible at source from the payments made by petitioner No. 1 to the contractors engaged for carrying out the aforesaid work. The petitioners contravened the provisions of section 194C inasmuch as they failed to deduct the tax at source while making payments to the contractors. On these allegations a complaint under section 276B was filed against the petitioners. 3. The petitioners have sought quashment of the proceedings mainly on the following…

Deprecated: trim(): Passing null to parameter #1 ($string) of type string is deprecated in /home/digixyei/sldsystempk.com/view/master-layout/view_case.php on line 492