ONORA HOSPITALITY PVT LTD REP BY DIRECTOR ASHISH VOHRA Vs. ASSISTANT COMMISSIONER.INCOME TAX DEPARTMENT (TDS)

JUDGEMENT

(1.) Prosecution has been launched against the petitioners by the Income Tax Department for the alleged offences punishable under Sections 276B read with Section 278B of the Income Tax Act, 1961 (hereinafter referred to as 'the Act').

(2.) Briefly stated, facts of the case are that petitioner No.1 - Company was engaged in the business of running and operating smallluxury hotels. Complainant-Department conducted a survey under Section 133A of the Act in the premises of accused No.1-Company on 20.01.2014. During the course of survey, it was detected that accused -Company had deducted tax at source for the Financial Years 2010- 2011 to 2013-2014, but had failed to remit the same to the Central Government account as per the provisions of Chapter XVII-B of the Act. The Assessing Officer issued show cause notices dated:06.02.2013 (Financial Year 2010-2011), dated:11.07.2014 for each Financial Years from 2011-2012 to 2013-2014, calling upon the accused-Company to show cause as to why prosecution should not be launched against them. Since there was no reply from the accused, the Assessing Officer issued another notice dated 04.09.2013. The accused failed to respond to the said notice also. Since there was no compliance by the accused-company and the accused deliberately failed to give satisfactory reply, the Commissioner of Income Tax (TDS) after giving sufficient opportunity to the accused, passed an order under Section 279 of the Act authorizing the complainant namely, Sri.O.N.Hariprasad Rao, Assistant Commissioner of Income Tax, TDS Circle 2(1), H.M.T Bhavan, Bengaluru, to prosecute the accused for the offence punishable under Section 276B read with Section 278B of the Act.

(3.) Heard learned counsel for the petitioners and learned Standing Counsel appearing for the respondent-Department.