News Update

CBDT explains what is 'tax effect' for purpose of filing appeal in cases beyond monetary limitsUS-UK coalition airstrikes at Houthis in Red Sea portPMK joins NDA; to share dais with PM at SalemUK begins hunt for sunken ship loaded with gold worth 4 bn poundsPrivacy at Stake: Evaluating Data Principal Rights in the DPDP Act 2023Delhi regains its title as world’s most polluted cityLitigation Management: CBDT revises instructions and monetary limits prescribed for filing appeal or SLP before courtsUnsettled borders and rise of China major challenges for defence forces, says Chief Anil ChauhanI-T- Rules of natural justice are contravened where notices of hearing are not sent to valid email addresses indicated by assessee & order passed in consequence thereto is invalidated : HCAmerican IRS Chief expects workforce to surpass one-lakh-mark in next 3 yrsI-T - Provisions of Section 148A clearly require that an assessee be granted opportunity of personal hearing & an order passed in non-compliance with this requirement stands vitiated: HCDeloitte LLP goes for restructuring to tamp down costsI-T - If no error is being found by AO qua acceptance and genuineness of transaction of assessee, then AO cannot initiate reopening, and if reopening is not permitted, then CIT cannot issue notice u/s 263: ITATNvidia unfolds powerful chip to retain edge in AI marketI-T - Additions framed u/s 68 were rightly quashed where the assessee has discharged onus of identity, creditworthiness and genuineness of transaction : ITATTrump’s lawyer says Trump has not means to raise bond in USD 464 mn fraud caseI-T- Addition cannot be framed on account of unexplained cash credit, where assessee has recorded the sales in its books and there is no adverse finding qua stock and purchases: ITATFood scarcity: Gaza heading for mass deathsCX - Tax demands merits being quashed where based on oral statements but without permitting Assessee to cross examine the deponents & where also based on circumstantial statements: CESTATBJP decides to go with Chirag Paswan; trashes his uncle Pashupati Paras in BiharST - Being appellant a registered service provider and filing their Service Tax returns, demand cannot be raised on the basis of Form-26AS obtained from Income Tax Department: CESTATDubai Financial Centre frames rules to regulate digital assetsCus - Clearance of domestic household goods without proper clearance, does not warrant disproportionate penalty of Rs 50000/-, as the same is not a case of regular import by an IEC holder: CESTATCBDT directs income tax field offices to remain open on March 29, 30 & 31stCX - In so far as security services for their factory and trading premises was concerned, said services was directly connected with their business and hence, appellant was entitled for credit of service tax paid: CESTAT
 
TDS default - A few nights in Tihar?

By TIOL News Service

NEW DELHI, JAN 20, 2018: TIS Hazari Court has ordered judicial custody of the Director of a Delhi based Real Estate and IT Solution Company for non-compliance in Income Tax TDS Default case. It was found during investigations that the company had deducted TDS but had not deposited in the Government account despite there being a statutory obligation by the Income Tax Act. This also led to harassment of many innocent persons whose TDS had been deducted but the TDS returns had not been filed by the Real Estate Company. It was found that during FY 2013-14, FY 2014-15 and FY 2015-16, amounts of Rs. 45,68,990/-, Rs. 35,45,290/- and Rs. 33,36,970/- were deducted by the assessee company. The assessee company was found to be defaulting on filing of TDS return statements. 

Taking into account all defaults, show cause notices were served upon the Director to explain why sanction for prosecution should not be granted under section 278B read with 276B of Income Tax Act for not complying with the provisions of the law in respect of non -deposition of the Income Tax deducted at source. However, during the proceedings, the assessee asked for repeated adjournments, instead of giving reasonable explanations for the defaults during the proceedings. Hence, it was concluded that there is no justifiable reason for the delay in depositing the TDS. This clearly showed the non-serious behaviour of the assessee towards the provisions of deduction and depositions of tax at source. Therefore, TDS Wing in exercise of powers under Section 279(1) of Income Tax Act sanctioned the filing of criminal complaint against the company as well as the Director under Section 276B read with 278B, 278E and 279 of the Act for FY 2013-14, FY 2014-15 and FY 2015-16 in 2017. 

Non-bailable warrant was issued against the Director in December 2017 for non-compliance with the case proceedings. The Non-bailable warrants returned to the court unexecuted with the report that accused is avoiding execution of the warrants. Hence, on 19 Jan 2018 accused was taken into custody and was remanded to judicial custody. The accused has been sent to Tihar Jail for the same.   

The Principal Chief Commissioner of Income Tax, Delhi, Mr. S. S. Rathore, stated that the Department is very serious about timely depositing of the TDS deducted by the employers. It is reiterated that the TDS is Government money which has to be deposited in Treasury on timely basis. Failure to deposit the tax deducted will lead to criminal prosecution with imprisonment from 3 months to 7 years. This year the Principal Chief Commissionerate - New Delhi has sanctioned prosecution in about 240 cases which clearly shows the strict attitude of Income Tax Department towards the defaulters.  The Principal Chief Commissioner - Income Tax - New Delhi has given a strong message to non-compliant tax payers that tax defaulters will find it difficult to escape from penalties and prosecutions from vigilant and proactive Income Tax Department and at the same time ensuring Best Taxpayer Friendly Services for the honest and compliant taxpayers.

 


POST YOUR COMMENTS
   

TIOL Tube Latest

Shri Shailendra Kumar, Trustee, TIOL Trust, giving welcome speech at TIOL Awards 2023




Shri M C Joshi, Former Chairman, CBDT




Address by Shri Buggana Rajendranath, Hon'ble Finance Minister of Andhra Pradesh at TIOL Awards 2023