Curb tax evasion, delay in depositing TDS firmly: Court

NEW DELHI: Tax evasion by individuals or companies by non-depositing TDS and other levies within prescribed time is rising day by day and should be curbed with a firm hand, a Delhi court has said while asking an automobile company to pay Rs 50,000 as fine.

Additional Chief Metropolitan Magistrate Devendra Kumar Sharma made the observations while directing the company -DD Autoword Pvt Ltd- to pay the fine for not depositing TDS (Tax Deducted at Source) for financial year 20082009 to the government within prescribed period.

"Evasion of tax by companies/persons in one form or the other by nondepositing of TDS or other taxes within the prescribed time is rising day by day which causes huge loss to government exchequer and such practice should be curbed with firm hand.

"In this case, admittedly, convict(the company) was under obligation to deposit the TDS amount within stipulated period from the date of deduction but same was not deposited (on time) and there was a delay," the court said, while holding it guilty under Income Tax Act.

The prosecution had told the court that the company had not deposited with the government the TDS amount for the financial year 2008 to 2009 within prescribed period.

The firm, however, contended that the delay in deposit of TDS was due to financial crunch and the entire amount, along with penalty/interest, had already been deposited.