Last week, a special Central Bureau of Investigation (CBI) court sentenced two directors of World Series Hockey Pvt Ltd (WSHPL), to two years of rigorous imprisonment. The conviction stemmed from their involvement in deceiving the service tax department through the use of false and forged letters.
This led to the improper defreezing of the company’s bank account, allowing the withdrawal of approximately Rs 45.7 lakh. The court also imposed fines of Rs 18,000 on each of the convicted directors.
The convictions were primarily linked to the manipulation of documentation, resulting in the improper defreezing of WSHPL’s bank account. This illicit maneuver enabled the unauthorised withdrawal of a substantial amount, approximately Rs 45.7 lakh, from the company’s financial holdings.
In contrast to the convictions, Pradeep Kumar Lenka, the general manager of Nimbus Communication Ltd, and Sachin Deo, an inspector with the service tax Commissionerate, were acquitted of the charges brought against them, reported TOI.
The prosecution, led by special public prosecutor Sandeep Singh, presented a robust case, relying on the testimonies of over 30 witnesses to substantiate the conviction. The 113-page judgment delivered by special judge VP Desai elucidated that the prosecution successfully demonstrated the freezing of M/s WSHPL’s Axis Bank account due to evasion of service tax. Furthermore, it came to light that the withdrawal of an income tax refund was facilitated through the use of a forged letter dated January 14, 2015.
Judge V.P. Desai clarified that the evidence presented was insufficient to establish the involvement of Lenka and Deo in preparing the forged letter. However, he underscored the responsibility of Sunil Manocha and Akash Khurana, being directors of M/s WSHPL, for the company’s day-to-day operations and decision-making processes.
While handing down the sentence, the judge acknowledged certain mitigating factors. Notably, the illegally withdrawn amount of Rs. 46 lakh was promptly deposited back, reflecting a corrective action by the accused. Additionally, leniency was considered in light of the advanced age and ill health of both convicted directors. This comprehensive legal proceeding highlights the intricate details surrounding the case, the evidence presented, and the considerations made by the judiciary in arriving at the final verdict.
Support our journalism by subscribing to Taxscan premium. Follow us on Telegram for quick updates
