Chandigarh, January 8, 2018
A local court today sentenced a Mohali resident to one-year jail in a case of the Income Tax Act.
Satha Singh was convicted under Section 276B (failure to deduct and pay tax) of the Income Tax Act 1961. He has also been asked to pay a fine of Rs 10,000 by the court.
An Income Tax officer had filed a case against Singh alleging that he was to deduct his tax under Section 194-C of the IT Act and failed to deposit the same in the Central Government account within the prescribed time as per the Income Tax Rules 1962. His TDS amounted to Rs 1.60 lakh on June 30, 2006, under Section 194-C of the IT Act, but it was deposited in the government account on October 5, 2010. As per the regulations, it had to be deposited within a year.
A show-cause notice was then issued to him in October, 2011, but Singh failed to file a reply. Hence, the assessing officer ordered on November 23, 2011, that he was liable to pay interest at 12 per cent per annum on the tax amount.
The assessing officer then submitted a proposal to the Income Tax Commissioner seeking prior sanction for prosecuting Singh.
After prima facie was established against the accused, he was summoned on May 19, 2017. The court held him guilty for having failed to pay tax and hence sent him to one-year jail after the arguments were completed. — TNS