P. JAYANANDAN Vs. RAMAKRISHNA STEEL INDUSTRIES LTD

JUDGEMENT

(1.) The revision petitioner/complainant/Income-tax Officer, TDS ward, Coimbatore, had filed a case in C.C. No. 62 of 2000, respectively, on the file of the Judicial Magistrate, Mettupalayam, against three respondents herein/accused for the offence under sections 276B and 276B read with section 278B of the Income-tax Act, 1961, for failure to remit income-tax deducted at source into the Government account from dividend paid to the shareholders, as per the provisions of section 194 of the Income-tax Act, 1961, for the assessment year 1988-89 stating that the first accused is a public limited company functioning at Karamadai, the second and third accused are the managing directors and administrative manager, respectively, of the first accused company and they are in charge of the affairs and responsible for the conduct of the business of the first accused. The complainant further submits that M/s. Ramakrishna Steel Industries Ltd., Karamadai, a public limited company, has paid a dividend on September 25, 1987, relating to the period ending on March 31,1987. The tax deducted on September 25, 1987, in the case of G. Narayanaswamy Naidu has been paid into the Government account only on March 28, 1988. The delay involved in the payment is five months and 21 days. The other details are as follows:

(2.) The interests for belated payments of tax deducted at source from dividend paid has been demanded as per section 201(1)(a) of the Income-tax Act which has been paid by the accused on June 30, 1989. The dividends paid are covered by the issue of certificate showing the date of payment as September 25, 1987. The complainant had sent a show-cause notice dated January 9, 1990, requiring them to show as to why they should not be prosecuted for the delay in making the payments into the exchequer and for the same, the accused had sent replies dated January 10, 1990, and March 8, 1999.

(3.) The complainant had also served a notice under section 2(35)(b) of the Income-tax Act, on February 28, 1990, against the second and third accused, being the managing director and the administrative manager of the first accused; fixing them as principal officers connected with the management and administration of the first accused company and the same was served on them on March 2, 1990. The accused had, willfully omitted to pay the tax deducted at source in time without any reasonable cause. The first accused company has willfully failed to remit, the tax deducted at source on dividend payments into the Government, of India account within the time allowed as per rule 30(1)(b) of the Income-tax Rules, 1962 . The first accused has, by this default; committed an offence punishable under section 276B of the Income-tax Act 1961.