Delhi High Court - Orders
Essel Green Energy Pvt Ltd & Ors vs Income Tax Office on 28 November, 2025
$~8
* IN THE HIGH COURT OF DELHI AT NEW DELHI
+ CRL.M.C. 8143/2025 & CRL.M.A. 34029/2025
ESSEL GREEN ENERGY PVT LTD & ORS.
.....Petitioners
Through: Mr. Kunal Cheema & Mr.
Sanket Gupta, Advs.
versus
INCOME TAX OFFICE .....Respondent
Through: Mr. Sunil Agarwal, SSC
with Mr. Viplav Acharya,
JSC, Ms. Priya Sarkar,
JSC, Mr. Anugrah
Dwivedi & Mr. Utkarsh
Tiwari, Advs.
CORAM:
HON'BLE MR. JUSTICE AMIT MAHAJAN
ORDER
% 28.11.2025 CRL.M.A. 34030/2025 (for exemption from filing the original / certified copies/annexures)
1. Exemption allowed, subject to all just exceptions.
2. The application stands disposed of.
CRL.M.C. 8143/2025 & CRL.M.A. 34029/2025
3. The petitioners challenge the continuance of the proceedings in a complaint filed by the Income Tax Department under Section 200 of the Code of Criminal Procedure, 1973 ('CrPC') for the offences under Section 276B read with Section 278B and 278E of the Income Tax Act, 1961.
4. It is alleged that the petitioners failed to deposit the TDS for the Financial Year 2017 - 2018 within the prescribed period.
5. The petitioners claim that undisputedly the TDS was deposited, though belatedly but prior to any Show Cause Notice being issued by the Department along with the interest and, This is a digitally signed order.
The authenticity of the order can be re-verified from Delhi High Court Order Portal by scanning the QR code shown above. The Order is downloaded from the DHC Server on 28/11/2025 at 23:21:15 therefore, no prosecution should have been initiated.
6. The learned counsel for the petitioners submits that the sanction order was erroneously passed rejecting the explanation of the petitioners for not depositing the TDS on time. He submits that when the assessee shows reasonable cause which prevented him from depositing the TDS, no criminal prosecution can be initiated.
7. He further submits that the entire TDS along with the applicable interest was deposited and, therefore, no prejudice was caused to the Department.
8. He submits that in terms of Section 276C, once tax has already been deposited along with the interest and that too prior to any action being taken by the respondent department, the same cannot be termed as wilful attempt to evade tax.
9. Issue notice.
10. Mr. Sunil Agarwal, Sr. Standing Counsel accepts notice on behalf of the respondent.
11. Reply, if any, be filed before the next date of hearing.
12. List on 02.02.2026.
13. The learned Trial Court is directed to not proceed further with the matter till the next date of hearing.
AMIT MAHAJAN, J NOVEMBER 28, 2025 "SK"
This is a digitally signed order.
The authenticity of the order can be re-verified from Delhi High Court Order Portal by scanning the QR code shown above. The Order is downloaded from the DHC Server on 28/11/2025 at 23:21:15