June 2025

A. Offences and Prosecution — Sanction for prosecution — Deduction of tax at source — Delay in depositing with revenue — Assessee depositing tax deducted with Revenue for A.Ys. 2012-13 to 2018-19 with interest though belatedly — Effect of circulars issued by CBDT — Interpretation of provisions of s. 276B to include delay in deposit of tax deducted at source manifestly arbitrary — Prosecution quashed: B. Offences and prosecution — Sanction for prosecution — Principal Officer — Directors of Assessee company prosecuted for delay in payment of tax deducted at source with Revenue — Non-issue of notice and order to treat any of them as principal officer of the assessee — No order imposing penalty as “deemed to be an assessee in default” on assessee or its directors — Criminal complaints against directors of assessee not stating consent, connivance or negligence on their part as required u/s. 278B(2) — Directors of assessee cannot be prosecuted: C. Offences and prosecution — Deduction of tax at source — Scope of s. 278B(2) — Conduct of business of company must have nexus with the offence committed — Amendment in law from year 1997 — Use of the phrase “as required by or under the provisions of Chapter VII-B” — Linked only with and explains manner of deduction of tax and payment thereof — Assessee deposited entire tax deducted at source with Revenue for A.Ys. 2012-13 to 2018-19 with interest belatedly — Prosecution quashed: