Delhi High Court quashes TDS prosecution over incorrect directorship claim

The Delhi High Court has quashed criminal proceedings against Akansha Kapoor regarding the alleged delayed deposit of Tax Deducted at Source (TDS) for the 2016-17 financial year. The prosecution against Kapoor was based on the premise that she served as a director and principal officer of Granite Gate Properties Pvt. Ltd.

During the proceedings, the Income Tax Department admitted that Kapoor had never been a director of the company. The court observed that the show-cause notice, the order passed under Section 2(35) of the Income Tax Act, the sanction order, and the criminal complaint were all founded on the incorrect assumption of her directorship. Consequently, Justice Manoj Jain ruled that the prosecution was fallacious and unsustainable, allowing the petition to quash the proceedings as they related to her.