Case Law Details
ITO Vs Ichibaan Automobiles Pvt Ltd (ACMM)
Conclusion: Deposit of TDS deducted to the credit of the Central Government with delay of 12 months without having reasonable cause was punishable with rigorous imprisonment of 3 months and fine of Rs.5,000/ (Rs. Five Thousand only) each for having committed offence..
Held: The complainant submitted that accused No.01 was a private limited company and accused No.02 was the principal officer of accused No.01 under obligation u/sec. 192 to deduct the Income Tax from salary paid/credited. During the period from 01.04.2010 to 31.03.2011 on various dates they deducted tax of Rs. 7,52,076/- but failed to pay or deposit the Income Tax so deducted to the credit of the Central Government within the prescribed period. He further submitted that accused No.02 being Principal Officer of accused No.01 were also liable for the same. A show cause notice was issued to all the accused but they did not respond. The complainant submitted that accused had committed a default u/sec. 200 and 204 of The IncomeTax Act r/w rule 30 of Income Tax Act, 1962 by failing without reasonable cause or excuse to pay the Income Tax so deducted to the credit of the Central Government. Hence, he filed present complaint against the accused for the offence punishable u/sec. 278B r/w sec. 278B. It was held no doubt, accused paid the tax with interest and penalty, but tax was paid after stipulated period. The accused preferred the application for compounding the offence before concern authority where as per act the powers of compounding was only given to Commissioner of Income Tax, but it was seen that no such compounding order had passed. The accused had deposited the TDS amount at belated stage. The offence U/sec. 276B r/w 278B of Income-Tax Act 1961 was punishable with rigorous imprisonment which should not be less than three months which might extend to 7 years and with fine. However, there was no allegation that accused was irregular in paying the tax other than the case in hand. Thus, the Court held that accused were liable for possible sentence of 3 months rigorous imprisonement and fine of Rs.5,000/ (Rs. Five Thousand only) each for having committed offence U/sec. 276B r/w sec. 278B.
FULL TEXT OF THE HIGH COURT ORDER /JUDGEMENT
1. The complainant Pramoda Natraj, Income Tax Officer (TDS)1(2)(4) had filed the complaint u/s. 200 of the Cr.P.C. against the accused for committing the offence punishable u/s. 276B of Income Tax Act, 1961 pertaining to financial year 2009-2010 and Assessment year 2010-2011.
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