Firoz Nadiadwala, one of the renowned personalities of Bollywood film industry has been convicted to 3 months of rigorous imprisonment. Nadiadwala who has produced blockbuster movies like ‘Welcome’, ‘Welcome Back’, ’Aan: Men at work’ and many more, took one year for depositing Rs. 8.56 lakh as Tax Deduction at Source (TDS) for the financial year 2009-2010.
As per the reports of TOI, The Ballard Pier magistrate court refuted his submission which states that the delay was due to financial constraints and less business during 2009-2010. His lawyer claimed that Nadiadwala didn’t produce any film during that period and the only income was through old films’ sale, due to which there was a delay in depositing TDS.
However, Additional Chief Metropolitan Magistrate, R S Sarkale, overruled the defense and 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”, he added.
Special public prosecutor Amit Munde said that a similar case against Nadiadwala was pending before the court. The court suspended it for a month after accused filed an appeal before the session court. He further added that despite being a well-educated and having sufficient money to pay TDS, Nadiadwala failed to do so.
The defense lawyer said that his client was a regular tax payer and he has already submitted TDS amount with interest, penalty and legal charges. He also said that false complaint has been lodged against his client.
The complaint was filed by Income Tax department in March 2014 after Nadiadwala failed to show reasonable cause or excuse for the delay in depositing TDS.