Allowing the petition the Court held that reason provided by the assessee for the delay in remitting the amount to the Central Government is sufficient to consist reasonable cause. Accordingly criminal prosecution against the assessee’s is not warranted. Court also held that there is no dispute that the assessees have paid the tax along with late payment interest. Prosecution is quashed. Relied, US Technologies International (P) Ltd. v. CIT (2023) 332 CTR 176 / 224 DTR 265 (SC) (AY.2014-15 to 2016-17)
Aditya Institute of Technology & Management v. State of Andhra Pradesh (2024) 340 CTR 208 / 240 DTR 447/ 163 Taxmann.com 738 (AP)(HC)
S. 276B : Offences and prosecutions-Failure to pay to the credit tax deducted at source-Reasonable cause-Paid tax with interest-Prosecution is quashed. [S. 278AA, Criminal Procedure Code, 1973, S 482]