Income Tax - Failure to deposit - TDS - Corporate Assessee sentenced
THE Income Tax Officer filed a complaint in the Court of ACMM that a company has deducted TDS amount of Rs.5,22,597/- and Rs.12,73,806/- during the Financial Year 2008-09 and 2009-10 respectively but has not deposited the same with Government account within the prescribed period. Hence, it was prayed that maximum fine may be awarded to the convict as prescribed in the Act.
The Judge observed, "Evasion of tax by companies/persons in one form or the other form by non-depositing of TDS or other taxes within prescribed time by a company, is rising day by day which causes huge loss to government exchequer and such practice should be curbed with firm hand. In this case, admittedly, the convict was under obligation to deposit the T.D.S. Amount within stipulated period from the date of deduction but same was not deposited and there was a delay."
So, the Company was sentenced to pay a fine of Rs.50,000/- for the offence u/s 276B of Income Tax Act for F.Y. 2008-09 and Rs.1,00,000/- for F.Y. 2009-10.
The Income Tax authorities are now launching prosecution in cases of non-deposit of TDS deducted.