Dismissing the appeal of the department, Hon’ble Supreme Court upheld the decision of the Hon’ble High Court that the assessee, an educational institution, had filed documents to show that it had not received fee reimbursement from the State Government within time and immediately after receiving the fee reimbursement, it had remitted the tax to the Central Government with interest and the reason provided for the delay in remitting the amount was sufficient to constitute “reasonable cause” under section 278AA of the Act. Therefore, criminal prosecution of the assessee was not warranted and quashed the prosecution. (AY. 2014-15, 2015-16, 2016-17)
ITO (TDS) v. Aditya Institute of Technology and Management (2025) 472 ITR 638/170 taxmann.com 708 (SC) Editorial : Aditya Institute of Technology and Management v. State of Andhra Pradesh [2024] 163 taxmann.com 738 (AP)(HC) (para 4)
S. 276B : Offences and prosecutions-Failure to pay to the credit tax deducted at source-Failure to remit tax deducted at source in time to Central Government-Assessee furnishing supporting documents to show that delay was due to late receipt of fee reimbursement from state Government-Explanation for delay plausible and sufficient cause established-tax deducted at source deposited with interest for delay payment-Criminal proceedings quashed-Supreme Court-Special Leave Petition dismissed. [S. 278AA, Art. 136]
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