Case Law Details
Suryodaya Infrastructure Pvt. Ltd. Vs ITO (TDS) (Bangalore District Court)
The issue under consideration is whether in case of default of TDS in company can the Managing Director of the company held responsible for the same?
In the present case, accused No.1 is a registered company and it is engaged in the business of infrastructure projects. Accused No. 2 is the Managing Director of accused No.1 company. Deducted TDS amount was Rs.60,78,468/- as per the TDS Returns filed by the accused No.1. Accused did not deposited the deducted TDS amount within time. But payment with interest was made on 31.3.2012. Thus there is delaying remittance of T.D.S. amount exceeding Rs.1,00,000/- (one lakh) thereby committed offence punishable U/s. 276B of Income Tax Act.
High Court states that company being accused No.1 is sentenced to pay fine of Rs.5,000/- (five thousand) for offence punishable U/s.276B of the Income Tax Act. Accused No.2 shall undergo rigorous imprisonment for a period of three months and to pay fine of Rs.5,000/-. In default of payment of fine, accused No.2 shall undergo simple imprisonment for a period of 30 days for the offence punishable U/s. 276B of the Income Tax Act and accused No.2 shall pay the fine imposed on accused No.1. Considering the fact that, TDS amounts with interest were deposited before initiation of criminal proceedings, financial constrains resulted in non-depositing the deducted TDS amount, no allegation against the accused No.1 about irregularity in paying taxes, trial court imposed minimum sentence permitted U/s.276B of the Income Tax Act 1961. Order of sentence is reasonable, in accordance with law and hence, sustainable.
FULL TEXT OF THE HIGH COURT ORDER /JUDGEMENT
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