Ms. Gurvinder Kaur, Panchkula V. ITO (TDS), Panchkula

ITA 1121/CHANDI/2011

• Counselvise Citation: 112121514 RSA 2011
• Duration Of Justice: 1 month(s) 20 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 12-01-2012
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Assessment Year: 2008-2009
• Appeal Filed On: 22-11-2011
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: N K SAINI
• Assessee Lawyers: SALINI KAPOOR
• Keywords: Reasonable cause
• Section: 273B

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL CHANDIGARH BENCH A, CHANDIGARH BEFORE SHRI D.K. SRIVASTAVA, ACCOUNTANT MEMBER AND MS. SUSHMA CHOWLA, JUDICIAL MEMBER ITA NO.1121 /CHD/2011 (ASSESSMENT YEAR: 2008-09) MS.GURVINDER KAUR, VS. THE INCOME TAX OFFICER ( TDS), C/O A.S.ENGINEERING & CONTRACTORS, PANCHKULA. # 328, SECTOR-10, PANCHKULA. PAN: RTKC02139E (APPELLANT) (RESPONDENT) APPELLANT BY : SMT.SALINI KAPOOR RESPONDENT BY : SHRI N.K.SAINI, DR DATE OF HEARING : 04.01.2012 DATE OF PRONOUNCEMENT : 12.01.2012 O R D E R PER SUSHMA CHOWLA, J.M. : THIS APPEAL BY THE ASSESSEE IS AGAINST THE ORDER O F THE COMMISSIONER OF INCOME TAX (APPEALS), PANCHKULA DAT ED 09.09.2011 RELATING TO ASSESSMENT YEAR 2008-09 AGAINST THE ORD ER PASSED U/S 272B OF INCOME TAX ACT, 1961. 2. THE ASSESSEE HAS RAISED THE FOLLOWING GROUNDS OF APPEAL: 1. THE LD.CIT (A) IS WRONG IN LEVYING A PENALTY OF RS.10,000/- U/S 272B OF THE INCOME-TAX ACT, 1961 AS THERE WAS A REASONABLE CAUSE FOR SUCH FAILURE. THE DEDUCTOR ACTED BONAFIDE AND DEDUCTED THE TDS, AND ON THE BELIEF OF DEDCTEE QUOTED PANS/NO PANS PROVIDED AND THE RETURN WAS ACCORDINGLY FILED. 2. THE LD. CIT (A) IS WRONG IN LEVYING PENALTY AS UNDER SECTION 139A, 139A(5)(C) AND 139A(5B) 139A(5A), THE DEDUCTEE SHOULD BE HELD RESPONSIBLE FOR PROVIDING AND QUOTING VALID PAN TO THE DEDUCTOR. 2 3. THE PRESENT APPEAL IS FILED AFTER A DELAY OF ONE DAY AND IN THE TOTALITY OF THE FACTS AND CIRCUMSTANCES WE CONDONE THE DELAY OF ONE DAY IN FILING THE PRESENT APPEAL. 4. THE ASSESSEE IS AGGRIEVED BY THE ORDER OF ORDER PASSED UNDER SECTION 272B OF THE ACT LEVYING THE PENALTY OF RS.1 0,000/-. THE ASSESSING OFFICER (TDS) WHILE GOING THROUGH THE QUA RTERLY RETURN FILED IN FORM NO.26Q NOTED THE ASSESSEE TO HAVE OMI TTED TO QUOTE PAN IN RESPECT OF ONE CASE. OPPORTUNITIES WERE ALL OWED TO THE ASSESSEE TO FURNISH THE SAME. HOWEVER, THE ASSESSE E DID NOT FURNISH ANY REPLY BEFORE THE ASSESSING OFFICER AND CONSEQUENTLY THE ASSESSEE WAS HELD TO BE IN DEFAULT AND PENALTY OF R S.10,000/- UNDER SECTION 272B OF THE ACT WAS LEVIED. 5. THE ASSESSEE FAILED TO APPEAR BEFORE THE CIT (AP PEALS) DESPITE VARIOUS NOTICES ISSUED BY THE CIT (APPEALS) AND THE APPEAL WAS DISMISSED IN LIMINE. 6. IN THE ABOVE CIRCUMSTANCES, THOUGH THE APPEAL ME RITS TO BE SET ASIDE TO THE FILE OF THE CIT (APPEALS) BUT IN VIEW OF THE SMALLNESS OF THE ISSUE WE PROCEED TO DISPOSE OF THE PRESENT A PPEAL AFTER HEARING THE RIVAL CONTENTIONS OF BOTH THE AUTHORIZE D REPRESENTATIVES. ON CONSIDERATION OF THE ISSUE IN TOTALITY AND AFTER HEARING THE RIVAL CONTENTIONS, WE FIND THE ISSUE RA ISED IN THE PRESENT APPEAL IS IN RESPECT OF PENALTY LEVIED UNDE R SECTION 272B OF THE ACT. UNDER THE TDS PROVISIONS OF THE ACT THE A SSESSEE IS BOUND TO FURNISH QUARTERLY RETURN IN RESPECT OF THE TAX D EDUCTION MADE BY IT OUT OF THE ACCOUNTS OF THE PAYERS. FURTHER EVER Y PERSON DEDUCTING TAX UNDER THE TDS PROVISIONS IS TO QUOTE THE PERMANENT ACCOUNT NUMBER OF THE PERSON TO WHOM THE PAYMENT HA S BEEN MADE 3 AND FROM WHICH TDS HAS BEEN DEDUCTED. THE NON-FURN ISHING OF THE TDS ENTAILS LEVY OF PENALTY UNDER SECTION 272B OF T HE ACT. HOWEVER, UNDER SECTION 273B OF THE ACT, IT IS PROVI DED WHERE THE ASSESSEE BONAFIDELY FOR A REASONABLE CAUSE HAD FAIL ED TO COMPLY WITH THE REQUIREMENTS OF VARIOUS ENLISTED PROVISION S, THEN NO PENALTY IS LEVIABLE UNDER THE RELEVANT PROVISIONS O F THE ACT. IN THE FACTS OF THE PRESENT CASE BEFORE US, ONE TIME PAYME NT WAS MADE BY THE ASSESSEE, WHO IS A CONTRACTOR, TO A PERSON WHO HAD CARRIED OUT ITS WORK AND WHO HAD DEDUCTED THE TDS AND DEPOSITED THE SAME IN THE GOVERNMENT ACCOUNT. HOWEVER, NO DETAILS OF PAN IN RESPECT OF SUCH DEDUCTEE WAS AVAILABLE WITH THE ASSESSEE AND A S THE PERSON FROM WHOSE ACCOUNT THE SAID TDS WAS DEDUCTED, WAS A LSO NOT AVAILABLE, THE QUARTERLY RETURN FOR TDS WAS FURNISH ED WITHOUT QUOTING THE PAN. IN THE TOTALITY OF THE FACTS AND CIRCUMSTANCES OF THE CASE, WE FIND NO MERIT IN THE AFORESAID LEVY OF PENALTY UNDER SECTION 272B OF THE ACT. REVERSING THE ORDER OF TH E CIT (APPEALS) WE DIRECT THE ASSESSING OFFICER TO DELETE THE PENAL TY LEVIED UNDER SECTION 272B OF THE ACT. 7. IN THE RESULT, THE APPEAL FILED BY THE ASSESSEE IS ALLOWED. ORDER PRONOUNCED IN THE OPEN COURT ON THIS 12 TH DAY OF JANUARY, 2012. SD/- SD/- (D.K.SRIVASTAVA) (SUSHMA CHOWLA) ACCOUNTANT MEMBER JUDICIAL MEMBER DATED 12 TH JANUARY, 2012 *RATI* COPY TO: THE APPELLANT/THE RESPONDENT/THE CIT(A)/TH E CIT/THE DR. TRUE COPY BY ORDER ASSISTANT REGISTRAR, ITAT, CHANDIGARH