Film producer Firoz A Nadiadwala gets 3 months imprisonment; deets inside

Film producer Firoz A Nadiadwala has been sentenced to three months’ imprisonment for a year-long delay in depositing Rs 8.56 lakh as tax deducted at source (TDS) for the financial year 2009-10. As per a report in Times Of India, additional chief metropolitan magistrate R S Sarkale said the 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,” said the magistrate.

TOI’s report also says that 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 the producer moved a plea and said that he wanted to file an appeal before the sessions court.

Whereas, Nadiadwala’s defence submitted that his client had already deposited the TDS amount with the government, with interest, penalty and legal charges. The defence also said that Nadiadwala was regular tax-payer and a false case had been filed against him.

For the uninitiated, the case was filed against Nadiadwala by an income tax officer (TDS) in March 2014. Under the Income-Tax Act, the amount has to be paid on or before the 7th of the coming month.

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