MUMBAI: In the strictest sentences awarded in the city for delay in depositing tax deducted at source (TDS), Ballard Pier magistrate court recently convicted and sentenced the director of a film production house to one year’s rigorous imprisonment. The maximum sentence earlier awarded for a delay was six months.Nirav Dama of Footcandles Film Pvt Ltd was found guilty of delaying payment of Rs 25 lakh TDS, deducted by the company in 2009-10. The court refuted the submission that the delay was due financial losses faced by the company. “TDS is the government amount, it cannot be used for personal purposes by the accused. Therefore, the reason of financial crisis and loss to company of the accused is not sufficient reasonable cause for such failure,” additional chief metropolitan magistrate Irfan Rehman Shaikh said.The court also said that even if the company was in loss in 2008-10, its business was not stopped. “Remunerations of directors and employees were paid as usual and day-to-day business was carried out regularly,” the court said.Special public prosecutor Amit Munde, who sought severe punishment against the accused, submitted that in addition to the huge amount defaulted, a big sum was also given to the director. Munde said this showed there was no financial crisis. “Because of the conduct of the accused, government suffered heavy losses,” he said.The court also fined the company and Dama Rs10,000 each.The case was filed in court in 2014 by income-tax officers (TDS). It was submitted that the amount was paid after a long delay, beyond 12 months.Among other grounds cited for seeking acquittal, the defence submitted that that there was a huge refund to be paid by the income-tax department to the company. But the court said, “Deposit of TDS amount and claiming refund are totally different aspects. Therefore, depositing of TDS amount cannot be dependant on the refund amount.”The court said that even depositing TDS amount and interest before initiation of court proceedings will not aid the case of the accused.“It is clear that the accused admitted not paying deducted TDS amount within the stipulated time. No doubt , the accused paid the tax with interest and penalty, but it was after the stipulated period,” the court said.