Trinity Beverages Pvt. Ltd v. Commissioner of Income-tax and another
|Trinity Beverages Pvt. Ltd
|Commissioner of Income-tax and another
|HIGH COURT OF HYDERABAD FOR THE STATE OF TELANGANA AND THE STATE OF ANDHRA PRADESH
|Date of Order
|short payment • late payment • interest • tds
|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.