New Delhi, May 14 (PTI) Tax evasion by corporates in one form or another is rising day by day causing huge loss to public exchequer, a Delhi court observed today and said this needs to be curbed with a firm hand.
Additional Chief Metropolitan Magistrate Devendra Kumar Sharma made the observations while slapping a fine of ₹ 1.5 crore on a private firm dealing in insurance business, for its failure to deposit TDS of over ₹ 1.6 crore with the Income Tax department within the stipulated time.
"It is seen that nowadays, evasion of tax by corporate/ persons in one form or the other form by non-depositing of TDS (tax deducted at source) or other taxes within prescribed time are rising day by day which causes huge loss to government exchequer and such practice should be curbed with firm hand," the court said.
It held Delhi-based M/s Medsave Health Care (TPA) Ltd guilty of failing to deposit the TDS with the government under the Income Tax Act and imposed a fine of ₹ 1.5 crore.
As per the IT department, on the total payment of ₹ 16.8 crore, the TDS to be deposited by the company amounted to ₹ 1.68 crore.
The court said the firm made payments to various parties and also deducted TDS but did not deposit it. Had there been no survey, huge amount of ₹ 16,85,28,897 would not have come to light and the tax amount would have been evaded, it said.
"The same would have caused great loss to the revenue as well as economy of the country. Its impact can be seen further in the light of recently launched Prime Minister's Life Insurance Scheme where on deposit of ₹ 330 in a year, the risk cover is Rs two lakh.
"From the undisclosed tax amount, thousand of persons can be provided life insurance free of cost. The convict company itself is dealing in insurance business," the court said.
The court refused to take a lenient view towards the firm observing that though TDS amount has been deposited but there was "unexplained delay" and disclosure was not voluntary.
Source: PTI
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