Assessee failed to deposit TDS amounts for Financial Year 2019-20 within statutory period, leading to a complaint case under sections 276B and 278B. Despite later depositing TDS amount with interest, prosecution was sanctioned under section 279(1). Assessee explained that delay was due to factors like market sluggishness, insolvency proceedings, and COVID-19 pandemic, with no mens rea involved. Allowing the petition the Court  held that authorities ought to have taken into consideration explanation offered by assessee particularly for reasons that company had suffered I.B. proceeding and restriction imposed during COVID-19 pandemic.  Further since in instant case prosecution indeed had been initiated by opposite parties after having received TDS amount along with interest, in such circumstances, entire proceedings initiated against assessee is  quashed.  Circular No. F. No. 285/90/2008-IT(Inv-I)/05, dated 24-4-2008.  (AY. 2020-21)