Tax returns filed late, directors of 2 jewellery companies get 6 months rigorous imprisonment
Mumbai, June 11, 2023
Calling it an economic offence, in a rare instance, two directors of two jewellery firms at Zaveri Bazaar were sentenced to six months rigorous imprisonment in two cases for failing to file income tax returns on time in the same assessment year.
The accused, Jitendra Jain and Kiran Jain, are both directors of Saloni Jewellers Pvt Ltd and M/s Yellow Jewellers Pvt Ltd. Seeking the maximum sentence against the two, special public prosecutor Amit Munde said they are habitual offenders and similar case is pending against them.
While the total amount of around Rs 4.5 crore was subsequently deposited, the court did not absolve them. “I come to the conclusion that accused have failed to file return for 2014-2015 in time. Though it is filed subsequently, it can not be considered here. Accused are directors of accused no 1 company. They have not denied their directorship. Therefore, they are responsible for the defaults made by accused no 1. Hence, it can safely be concluded that the complainant has proved guilt of accused under section 276CC read with Sec 278E of the Act beyond reasonable doubt,” said additional chief metropolitan magistrate L S Padhen.
Refuting the defence of the accused, the magistrate also said that the accused failed to prove that the default was not intentional and wilful and caused due to financial loss. The magistrate said that the prosecution filed a copy of a cash transaction. "Admittedly, it shows that the accused have deposited Rs 12 crore in mid-2016… But it is surprising to see that in assessment year 2014-15, the accused was facing financial crunch, loss in business and within some months, he had deposited a huge amount of Rs 12 crore in the bank. Though it is not deposited within relevant assessment year, but depositing huge amount within a short span speaks (for) itself about previous financial position of the accused. Unless he had income in AY 2014-2015, he would not deposit a huge amount after demonetisation. The accused failed to explain ...," the magistrate said.
While the judgments were pronounced in April, the detailed copies were made available last week. The accused were subsequently granted temporary bail for filing appeals after they moved court.
In 2018, IT said a survey done on business premises and audit report and balance sheet of Yellow Jewellers Pvt Ltd dated May 7, 2014 showed profit after tax of over Rs 1 crore and tax liability around Rs 52 lakh. For Saloni Jewellers Pvt Ltd, it was alleged that on April 29, 2014 it was found that profit after tax was Rs 6.8 crore and provision for current tax liability was of Rs 3.9 crore.
Special public prosecutor Amit Munde said both are habitual offenders and a similar case is pending against them
[The Times of India]
