Bollywood’s famous producer Firoz A Nadiadwala who is known for producing films like Welcome, Welcome Back, Awara Pagal Deewana, Aan: Men At Work among others has recently sentenced to three months jail for non-payment of tax.
The producer has been convicted for a year-long delay in depositing Rs 8.56 lakh as tax deducted at source (TDS) during the financial year 2009-10, on Thursday.
According to a report in Times Of India, the Ballard Pier magistrate court said that the subsequent payment does not absolve criminal liability. The report further states, “The court refuted his submission that the delay was due to a financial constraints and less business during 2009-10. The defence claimed there was no active film production for three years and income only comprised of old films’ sale, due to which there was a delay in depositing TDS.”
Firoz A Nadiadwala sentenced to 3 months jail
However, additional chief metropolitan magistrate R S Sarkale, said that Nadiadwala cannot withhold government money for his own use. He said, “Accused cannot be allowed to use the tax amount, so deducted for any other purpose. TDS is deducted on behalf of the government and should be deposited in the government account. Deductor is not supposed to finance their business through government money. The matter on record does not substantiate the contention of the accused that due to financial crunches in fund, accountant’s negligence, the accused was not aware about payment of depositing tax, resulted in not depositing the TDS amount.”
The TOI report further says, “Special public prosecutor Amit Munde said a similar case against Nadiadwala was pending before the court. The court suspended the sentence for a month after Nadiadwala moved a plea and said that he wanted to file an appeal before the sessions court. Munde had told the court that despite being an educated person and having sufficient money to pay TDS, Nadiadwala had failed to do so. Nadiadwala’s defence submitted that he had already deposited the TDS amount with the government, with interest, penalty and legal charges. The defence also said that he was regular tax-payer and a false case had been filed against him.
The complaint against Nadiadwala was filed by an income tax officer (TDS) in March 2014. It was alleged that he had failed to show reasonable cause or excuse for not paying the amount within the prescribed period. The prosecution said there was a delay of over 12 months. As prescribed under the Income-Tax Act, the amount has to be paid on or before the 7th of the following month.”