Company’s MD Sentenced 3 months rigorous imprisonment for TDS default

The Court of the Special Judge, Economic offences, Nampally, Hyderabad has sentenced the Managing Director of M/s Kitty Steels Ltd., Hyderabad to rigorous imprisonment for 3 months along with the fine of Rs. 5000/- each for the two offences committed under section 276B and 276C of the Income Tax Act.

The assessee company had deducted tax at source from the salaries, dividends and payments made to the contractors, but had not deposited the tax so deducted to the credit of the Central Government within the prescribed time.

The assessee company had also failed to issue the requisite certificates of TDS u/s 203 of the Income Tax Act.

The Hon’ble Court, after hearing both sides and perusing the documents came to the conclusion that the assessee had willfully attempted to evade the payment of tax and had committed offences punishable u/s 276B and 276C(2) of the Act.