Karnataka HC Dismisses IT Dept's Appeal Seeking Enhanced Sentence for TDS Default; Directs Approach to Sessions Court [Read Order]
The High Court dismissed a criminal appeal filed by the Income Tax Department seeking enhancement of sentence for TDS default, holding that the matter falls under the jurisdiction of the Sessions Court.
In a recent ruling, the Karnataka High Court dismissed a criminal appeal filed by the Deputy Commissioner of Income Tax. The Department had approached the High Court under Section 377 of the Cr.P.C., seeking enhancement of the sentence imposed on the respondent for offences punishable under Section 276B of the Income Tax Act, 1961, relating to the failure to deduct tax atsource (TDS).
The case originated from a judgment by the Special Court for Economic Offences at Bangalore, which had convicted the respondent, Genewa Software Technology Limited. Dissatisfied with the sentence awarded, the Revenue Department appealed to the High Court for a stricter punishment.
During the hearing, the counsel for the appellant brought to the Court's attention two significant judgments delivered by a Co-ordinate Bench of the same High Court. These included the judgment dated 06.01.2025 in Deputy Commissioner of Income Tax v. M/s. Genewa Industries Limited and another dated 30.07.2025 in The Deputy Commissioner of Income Tax v. Murlikrishna Reddy.
The counsel submitted that, based on these precedents, it has been established that appeals involving questions regarding the adequacy of a sentence should be presented before the jurisdictional Sessions Court rather than the High Court. Following this submission, the appellant sought permission to withdraw the appeal to approach the appropriate lower court.
The Single Judge Bench comprising Justice M.G.S. Kamal took the submissions on record and noted that the respondent's counsel did not dispute the legal position. Accordingly, the Court dismissed the appeal as withdrawn, granting liberty to the appellant to present the same before the jurisdictional Sessions Court.
The Court also ordered that the time consumed in prosecuting the appeal before the High Court be exempted for the purpose of limitation, protecting the Department's right to file the appeal afresh.
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