Prosecution u/s 276b

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kunal (Querist)
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06 August 2013 dear experts,
i'm in receipt of notice of prosecution u/s 276B for late depositing of TDS INTO CENTRAL GOVT. A/C
amount of tds : Rs. 31,764
dealy : 12 months

i also have resonable cause that my accountant suddenley left the job..

now please tell how to reply to the income tax department??

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)
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06 August 2013 Seems sudden leaving of the accountant is not a reasonable cause for the non deposit of TDS for 12 months.

However, you may remit the money to the government account,file a letter showing the reason for the delay and attaching the copy of the challan therewith and thereby request to drop the prosecution proceedings initiated.

You can also rely, while drating the reply, on CBDT instruction no. 1335,dated 28-5-1980 stating that prosecution should not normally be proposed when the amounts involved are not substantial and the amount in default has also been deposited in the meantime to the credit of the Government.

A word of caution:- Matter should be handled with due care under the guidance of a senior counsel.

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CA PARAS BAFNA

CA PARAS BAFNA (Expert)
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06 August 2013 Your reply is not suitable and is not tenable.
.
" Suddenly" and a delay of "12 months" has a long gap which is not digestible.
.
The cheque book was not with the accountant.
.
You have to select any of the two- a good "CA" or a bad "Police Inspector".
.

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kunal

kunal (Querist)
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07 August 2013 sir please suggest any reasonable cause?

CA PARAS BAFNA

CA PARAS BAFNA (Expert)
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07 August 2013 First of all "Action" is required.
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Follow the advise of Warrier Sir and deposit the amount with interest @ 1.5% p.m and part of the month.
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Then handover the matter of drafting a suitable reply to an expert CA.
.

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kunal

kunal (Querist)
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07 August 2013 thank you sir..

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