Have you not deposited that TDS with the Government – beware you can go to jail!
Government is perceived as symbolized by three lions. As you prepare to defend yourself against the state might of three lions, remember there is actually a fourth unseen lion and it may pounce on you most unexpectedly. Many companies go easy on depositing the TDS amounts with the government and routinely they credit it late and mostly with interest. If you have been following this path, you are in for trouble. Your company, its directors, and other responsible persons are liable for prosecution. It was more than 15 years ago that prosecution was launched against a company and its directors for delayed crediting of TDS. They took the case from the Trial Court all the way up to the Supreme Court and lost all the way and ultimately – on every count.
They pleaded that prosecution was illegal, that company cannot be prosecuted, that directors cannot be prosecuted, that sanction for prosecution was wrong, that prosecution was not right as the TDS has been deposited with interest, that a lady is not generally associated with the day to day affairs of the company, that they had shown a reasonable cause for delay, that when penalty is imposed, prosecution is not fair, that prosecution should be dropped as more than 15 years have elapsed and that finally they should be exempted from personal appearance in the trial court.
As stated before, they lost on every count. The Supreme Court was only interpreting the law – they had not made this law!
Continuing our tradition of bringing the latest in law to you, today we carry this milestone judgement. See our Breaking News for more details,