NE BUSINESS BUREAU
CHENNAI, JAN 28
The Special Court of Economic Offences, Chennai, convicted three directors of a private limited firm for not remitting the income tax deducted at source (TDS) from its employees to the government account, the Income Tax Department said on Monday.
- The Income Tax Department TN&P Region has so far obtained seventeen convictions during this financial year i.e 2024-25
- It imposes rigorous imprisonment for six months and Rs 25,000 fine each with an additional three months of simple imprisonment in case of default in payment of the fines
- Levies Rs 25,000 fine on the company
With this, the Income Tax Department TN&P Region has so far obtained seventeen convictions during this financial year i.e 2024-25
The court held that the accused had committed an offence punishable under section 276B of the Income Tax Act, 1961. It imposed rigorous imprisonment for six months and Rs 25,000 fine each while the company was fined Rs 25,000, with an additional three months of simple imprisonment in case of default in payment of the fines, the department said in a statement here.
The department, however, did not name the accused or the company and its location in the statement.
“Recently, a conviction order was obtained against a private limited company and its directors for failing to deposit the TDS amount deducted during the financial year 2008-2009 relevant to Assessment Year 2009-10 into the Government treasury within the stipulated time, thereby violating sections 200 and 204 of the Income Tax Act, 1961. The above default is a prosecutable offence as per Section 276B read with section 278B of the Income Tax Act, 1961. In respect of the above default committed, the Department filed a prosecution complaint against the assessee company and its three directors for the offence committed u/s 276B r.w.s 278B of IT Act, 1961,” the release stated.
The Additional Chief Metropolitan Magistrate (ACJM), Economic Offences-I, Chennai took cognizance of the complaint and framed charges against the assessee company and its directors. Subsequently, the ACJM, EO-I, Chennai on conclusion of the trial proceedings has passed a judgment holding the assessee company along with its three. directors guilty of the offences charged u/s 276B r.w.s 278B of IT Act, 1961 for the AY 2008-09.
L Muralikrishnan, Special Public Prosecutor represented the Department during the prosecution proceedings in this case.
An order of conviction was passed by the ACJM vide order dated 20.12.2024 holding the assessee company and its three directors guilty of the offence charged against them.
