Delayed payment of TDS beyond one year

[Amalraj Michael]

We are private limited company , we paid the TDS amount into Goverment treasury for the fy 09-10 by July 11 .

the IT issued a show cause notice as to why they cannot procecute me for this delay . I believed that TDS should be remited befroe filing of the return and accordingly all the TDS deducted were deposited by July befroe filing of the return with out interest  . The IT issued a notice for the amount relating to first quarter of 9/10 - which goes beyond one year .  I requested the CIT to drop the case as I had paid and I also paid interest later . We also had some financial difficulties - even the creditros were used to be paid after 6 months or so . The CIT says go for compounding - what is meaning of compounding - if we compound , wll they drop the procecuton proceedings ? pl advise   

AI Summary

Company Faces Potential Prosecution for Late TDS Payment; CIT Suggests Compounding to Avoid Legal Action A private limited company delayed the payment of Tax Deducted at Source (TDS) for the fiscal year 2009-10, depositing it in July 2011, which led to a show cause notice from the Income Tax department for potential prosecution. The company argued that TDS should be remitted before filing returns and later paid the interest. The Commissioner of Income Tax (CIT) suggested compounding to potentially drop prosecution proceedings. A response from a Chartered Accountant highlighted relevant sections of the Income Tax Act regarding penalties and prosecution for TDS defaults, emphasizing the need for a reasonable opportunity to be heard.