Trinity Beverages Pvt. Ltd v. Commissioner of Income-tax and another - 2020-LL-0226-116

Citation	2020-LL-0226-116
Appellant Name	Trinity Beverages Pvt. Ltd
Respondent Name	Commissioner of Income-tax and another
Court	HIGH COURT OF HYDERABAD FOR THE STATE OF TELANGANA AND THE STATE OF ANDHRA PRADESH
Relevant Act	Income-tax
Date of Order	26/02/2020
Assessment Year	2015-16
Judgment	View Judgment
Keyword Tags	short payment • late payment • interest • tds
Bot Summary:	The petitioner has assailed the order dated 29.01.2020 passed under Section 279 of the Income Tax Act, 1961 by the respondent No.1 granting sanction for prosecution under Section 276B of the Act for prosecution of the petitioner company and two of its Directors. This order had been preceded by a show cause notice dated 14.03.2017 wherein it was stated that the respondent No.1 had perused the facts of the petitioner s case and found that the CPC-TDS has processed quarterly TDS statements filed by the petitioner for the financial year 2014-15 and has generated the demand of Short payment/Late payment Interest and that there was a clear violation of the provisions of chapter XVIIB of the Act. When such serious action, as a prosecution, is sought to be sanctioned by the respondent No.1, it is incumbent on him to give more particulars so that the petitioner can reply specifically to the allegation leveled against it. We are of the considered opinion that the show cause notice dated 14.03.2017 issued under Section 279(1) of the Act to the petitioner is vague and on the basis of the said show cause notice, the impugned order dated 29.01.2020 could not have been passed by the respondent No.1. Accordingly, the order dated 29.01.2020 passed by the respondent No.1 as well as the show cause notice dated 14.03.2017 issued by the respondent No.1 are set aside and liberty is granted to the respondent No.1 to issue fresh show cause notice to the petitioner with specific particulars about the alleged violation by the petitioner of the provisions of the Act with supporting material. Thereafter, the petitioner is directed to reply to the same within four weeks of receipt of the said show cause notice; and the respondent No.1 shall then pass a reasoned order in accordance with Section 279 of the Act and communicate it to the petitioner. As a sequel, the miscellaneous petitions, if any pending, shall stand closed.

HON'BLE SRI JUSTICE M.S. RAMACHANDRA RAO AND HON BLE SRI JUSTICE T. AMARNATH GOUD WRIT PETITION No.3568 of 2020 ORDER: (Per Hon ble Sri Justice M.S. Ramachandra Rao) Heard Ms. Pratyusha Boppana, learned counsel, representing learned counsel for petitioner and Sri J.V. Prasad, learned senior standing counsel for Income Tax Department. 2. petitioner has assailed order dated 29.01.2020 passed under Section 279 (1) of Income Tax Act, 1961 (for short Act ) by respondent No.1 granting sanction for prosecution under Section 276B of Act for prosecution of petitioner company and two of its Directors. 3. This order had been preceded by show cause notice dated 14.03.2017 wherein it was stated that respondent No.1 had perused facts of petitioner s case and found that CPC-TDS has processed quarterly TDS statements filed by petitioner for financial year 2014-15 and has generated demand of Short payment/Late payment Interest and that there was clear violation of provisions of chapter XVIIB of Act. 4. No particulars have been given for which month there is short payment and which month there is late payment and which provision of chapter XVIIB of Act was violated. When such serious action, as prosecution, is sought to be sanctioned by respondent No.1, it is incumbent on him to give more particulars so that petitioner can reply specifically to allegation leveled against it. 2 5. We are of considered opinion that show cause notice dated 14.03.2017 issued under Section 279(1) of Act to petitioner is vague and on basis of said show cause notice, impugned order dated 29.01.2020 could not have been passed by respondent No.1. 6. Accordingly, order dated 29.01.2020 passed by respondent No.1 as well as show cause notice dated 14.03.2017 issued by respondent No.1 are set aside and liberty is granted to respondent No.1 to issue fresh show cause notice to petitioner with specific particulars about alleged violation by petitioner of provisions of Act with supporting material. Thereafter, petitioner is directed to reply to same within four (4) weeks of receipt of said show cause notice; and respondent No.1 shall then pass reasoned order in accordance with Section 279 of Act and communicate it to petitioner. writ petition is allowed. As sequel, miscellaneous petitions, if any pending, shall stand closed. There shall be no order as to costs. M.S. RAMACHANDRA RAO, J T. AMARNATH GOUD, J February 26, 2020 DSK Trinity Beverages Pvt. Ltd v. Commissioner of Income-tax and another

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