Need Tally
for Clients?

Contact Us! Here

  Tally Auditor

License (Renewal)
  Tally Gold

License Renewal

  Tally Silver

License Renewal
  Tally Silver

New Licence
  Tally Gold

New Licence
 
Tally On Cloud Tally on Cloud: Ready for the Daily Backup Requirement
Keep your Tally books accessible from anywhere while supporting your Rule 46(8) obligations. With daily backups configured on servers physically located in India, Tally on Cloud helps you maintain the backup arrangement required for electronic books of account under the Income-tax Rules, 2026. Move your Tally to the cloud with confidence.
Open DEMAT Account with in 24 Hrs and start investing now!
« Top Headlines »
Open DEMAT Account in 24 hrs
 Mock Test Papers Series - I & II for Students appearing in CA Foundation January 2027 Examination.
 Income Tax Rules 2026: CBDT Introduces Revised Form 161 for Penalty Waiver, Clarifies Misreporting Categories and Taxpayer Relief
 ITR Filing and Income Tax Audit Deadline Extended: 5 Critical Things Taxpayers Must Know
 Filing Belated ITR for AY 2026-27? Know Which Losses You Can Carry Forward and Which You May Lose
 CBDT Extends Tax Audit Report Deadline to October 21, ITR Filing Last Date to November 21 for AY 2026-27
 CBDT Extends AY 2026-27 ITR Filing Deadline for Tax-Audit Cases: New Dates and Key Compliance Details
 Foreign Assets Missing From Your ITR? Income Tax Department Opens One-Time Disclosure Window
 Tax Audit Deadline September 30: Why AIS, TDS and GST Figures May Not Match Your ITR and What Taxpayers Should Do
 Tax audit deadline September 30: Common mistakes taxpayers should avoid
 Your ITR says ‘verified’, but the refund hasn’t arrived? 5 reasons why your money could be stuck
 Missed the ITR Deadline but TDS Refund Is Due? Here’s How You Can Still Claim Your Money

I-T defaulters liable for criminal prosecution: SC
March, 28th 2007

An employer or the principal officers of an organisation are liable for criminal prosecution if they fail to pay Income Tax to the government, the Supreme Court has held.

"It is true that the Act (Income Tax) provides for imposition of penalty for non-payment of tax. That, however, does not take away the power to prosecute accused persons if an offence has been committed by them," a Bench of Justices C K Thakker and P K Balasubramanyan said, while dismissing an appeal filed by Madhumilan Syntex Limited, a company engaged in the production of yarn.
 
The company had filed an appeal challenging the criminal prosecution launched by the Income Tax Department for non remittance of Rs 1,29,348 tax deducted at source (TDS) collected from the employees for the assessment year of 1989-90.

Though the company subsequently paid the amount with interest, the Income Tax Department launched criminal proceedings against the company officials including a lady director Chandraprabha Modi, in the court of the Additional Chief Judicial Magistrate (Economic Offences), Indore.

The directors were made criminally liable as they were deemed to be the Principal Officers of the organisation responsible under the Act for collection and remittance of the TDS.

Upholding the department's action, the Bench said that once a statute prescribes payment of tax, it was obligatory on the part of the assessee to pay the same.

"Once a statute requires to pay tax and stipulates period within which such payment is to be made, payment must be made within that period. If the payment is not made within that eriod, there is default and an appropriate action can be taken under the Act," the Bench said in justification of the proceedings launched against the appellants.

Noting that the proceedings had been prolonged on account of the various cases filed by the company against the prosecution, the Bench rejected the plea of the appellants that the case be quashed as the matter was 15 years old.

However, the Bench clarified that it was not entering into the merits of the case involving the department and the company and it was left to the trial court to decide the same.

Home | About Us | Terms and Conditions | Contact Us
Copyright 2026 CAinINDIA All Right Reserved.
Designed and Developed by Ritz Consulting