Where an assessee fails to deduct tax and deposit to the account of Central Government, the assessee can be prosecuted u/s. 276B. However, the apex court in Madhumilan Syntex Ltd. vs. Union of India (2007) 290 ITR 199, held that the assessee being a company is a juristic person and substantive sentence cannot be imposed on it. However, it was stated that other consequences like payment of fine etc., would ensue.
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