South Mumbai based, the director of a jewelry company,Paresh C Shah has been convicted guilty for deliberately not filling income tax returns for assessment in year 2014-15, despite the repeated notices.
The magistrate court held both Ms Shah Time and Jewels Pvt Ltd and its director, guilty. special public prosecutor Amit Munde said that a fine of Rs 5,000 will be imposed on each commodity.
Moreover, the court declined the stance of " lack of knowledge" and another stance that another director, who had to fill the returns had no done so, because the court found out that the director has resigned by then as did not hold any responsibility to fill returns.
The chief metropolitan magistrate R S Sarkate said that, " No explanation was given before the court regarding ignoring the repeatedly serving the notice. Moreover, the explanation given to the court is not at all acceptable." adding on to this, Munde said that, this case cannot be taken lightly, as Shah didn't file the returns despite being an educated person.
This complain was filed by the deputy commissioner of the Income Tax in February 2018. Even though the maximum sentence could have been of 2 years but since there were no complains regarding the company being irregular in paying taxes, so the sentence was reduced to the minimum of 3 months.
The prosecution alleged that the company did not file its return within the time constraints. It further showed a cause notice which was issued to the company on November 30, 2014 to both the company and the director stating why the sanction for their prosecution should be submitted under the Income tax act. When, either of them didn't respond, the complaint was filed.
