Mumbai: Private firm director gets 3 months jail for TDS default

A magistrate court in Ballard Pier has sentenced a private firm’s director to three-months of rigorous imprisonment for defaulting on depositing with the government over Rs. 13 lakhs his company had deducted as TDS in 2015.

The complaint had been filed against Mohammed Khan’s Kurla-based company Sana Iqra Projects Pvt. Ltd. (now closed) by an Income Tax officer under the Income Tax Act. The officer had complained that quarterly TDS statements show that in the financial year 2014-’15, an amount of Rs. 13,26,719 was deducted by the firm but was not deposited with the government within the due date, that is, the seven of next month. Two years later in April 2017, the department had sent the firm show cause notices, but no one had appeared and explained the reason for the default. Khan had been absconding and the case against him was separated. Another director of the firm and the firm itself were convicted by the court in April this year in the case.

Khan had taken the defence that his company was engaged in earth excavation, he used to be on business trips to Rajasthan for months on end and was not aware of the accounting and income tax related matters. He also said that the company had paid up the amount along with the penalty later, before the complaint was filed.

Additional Chief Metropolitan Magistrate IR Shaikh said in the order that the accused did not pay the deducted TDS amount within the stipulated time…even depositing the TDS amount and interest before the initiation of the proceedings does not come to the help of the accused. On seeing the nature of the offence, the court said it is of the considered view that the accused is liable for the punishment.