ITO (TDS), Rohtak V. The Executive Engineer, Rewari

ITA 142/DEL/2014

• Counselvise Citation: 14220114 RSA 2014
• Duration Of Justice: 1 year(s) 5 month(s) 26 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 03-07-2015
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: SMC
• Next Hearing Date: 03-06-2015
• Assessment Year: misc
• Appeal Filed On: 08-01-2014
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: K K JAISWAL
• Section: 139

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCHES: SMC NEW DELHI BEFORE SHRI G.C. GUPTA, VICE PRESIDENT ITA NOS. 141 & 142 /DEL/201 4 ASSESSMENT YEAR: 2010 - 11 THE INCOME TAX OFFICER (TDS), VS. THE EXECUTIVE ENGINEERS, ROHTAK. PANCHAYATI RAJ, GARHI BOLNI ROAD, REWARI (PAN: RTKPO1876A ) (APPELLANT) (RESPONDENT) APPELLANT BY : SH. K.K. JAISWAL, SR. DR RESPONDENT BY : NONE. DATE OF HEARING: 03.06.2015 DATE OF PRONOUNCEMENT : 03.07.2015 O R D E R PER G.C. GUPTA, VICE PRESIDENT THESE TWO APPEALS BY THE REVENUE FOR THE ASSESSMENT YEAR 2010 - 11 ARE DIRECTED AGAINST THE ORDER O F L EARNED CIT(A). THESE ARE BEING DISPOSED OF WITH THIS CONSOLIDATED ORDER. 2. AT THE TIME OF HEARING, NONE APPEARED ON BEHALF OF THE ASSESSEE AND ACCORDINGLY THE APPEALS OF THE REVENUE ARE BEING DISPOSED OF EX PARTE QUA THE RESPONDENT ASSESEE ON MERITS AFTE R HEARING THE LEARNED DR. 2 IT A NOS. 141 & 142/DEL/2014 2 3 . THE GROUNDS OF APPEAL OF THE REVENUE IN ITA NO. 141/DEL/2014 ARE AS UNDER: I. ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE, THE LD. CIT(A) HAS ERRED IN LAW AND FACTS IN DELETING THE PENALTY U/S 272B OF THE I. TAX ACT AMOUNT ING TO RS. 3,00,000/ - WITHOUT ANY COGENT REASON. II. ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE, THE LD. CIT(A) HAS ERRED IN LAW AND FACTS BY DELETING THE PENALTY BY HOLDING THAT ASSESSEE PR HAS FILED CORRECTION STATEMENT IMMEDIATELY ON RECEIPT OF SHOW CAUSE NOTICE GENERATED BY THE SYSTEM, IGNORING THE FACT THAT ASSESSEE PR DID NOT FILE ANY CORRECTION STATEMENT IN RESPONSE TO THE SHOW CAUSE NOTICE ISSUED BY THIS OFFICE. III. ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE THE LD. CIT(A), HAS ERRED IN LAW AN D FACTS IN DELETING THE PENALTY U/S 272B OF THE I. TAX ACT IGNORING THE FACTS THAT THE ASSESSEE PR HAS QUOTED INVALID PAN IN THE CASES OF 30 DEDUCTEES, IN VIOLATION OF SUB - SECTION (5B) OF SECTION 139 OF THE I. TAX ACT. 4. THE GROUNDS OF APPEAL OF THE REV ENUE IN ITA NO. 142/DEL/2014 ARE AS UNDER: I. ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE, THE LD. CIT(A) HAS ERRED IN LAW AND FACTS IN DELETING THE PENALTY U/S 272B OF THE I. TAX ACT AMOUNTING TO RS. 3,50,000/ - WITHOUT ANY COGENT REASON. II. ON THE FACTS A ND IN THE CIRCUMSTANCES OF THE CASE, THE LD. CIT(A) HAS ERRED IN LAW AND FACTS BY DELETING THE PENALTY BY HOLDING THAT ASSESSEE PR HAS FILED CORRECTION STATEMENT IMMEDIATELY ON RECEIPT OF SHOW CAUSE NOTICE GENERATED BY THE SYSTEM, IGNORING THE FACT THAT AS SESSEE PR DID NOT FILE ANY CORRECTION STATEMENT IN RESPONSE TO THE SHOW CAUSE NOTICE ISSUED BY THIS OFFICE. III. ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE THE LD. CIT(A), HAS ERRED IN LAW AND FACTS IN DELETING THE PENALTY U/S 272B OF THE I. TAX ACT IGNO RING THE FACTS THAT THE ASSESSEE PR HAS QUOTED INVALID PAN IN THE CASES OF 35 DEDUCTEES, IN VIOLATION OF SUB - SECTION (5B) OF SECTION 139 OF THE I. TAX ACT. 3 IT A NOS. 141 & 142/DEL/2014 3 5. THE LEARNED DR SUBMITTED THAT THE ASSESSEE HAS NOT FILED THE CORR ECTED STATEMENT OF PERMANENT A CCOUNT NUMBERS AT THE LEVEL OF THE ASSESSING OFFICER. HE SUBMITTED THAT THE CIT(A) HAS IGNORED THAT THE ASSESSEE HAS QUOTED INVALID AND INCORRECT PERMANENT ACCOUNT NUMBERS IN CASES OF 30 DEDUCTEES IN VIOLATION OF THE PROVISIONS OF SECTION 139A (5B) OF THE INCOME - TAX ACT, 1961 (FOR SHORT THE ACT ) . HE REFERRED TO THE RELEVANT PORTION OF THE PENALTY ORDER OF THE ASSESSING OFFICER IN SUPPORT OF THE CASE OF REVENUE. HE RELIED ON THE ORDER OF ASSESSING OFFICER. 6. I HAVE CONSIDERED THE SUBMISSIONS OF THE LEAR NED DR AND HAVE PERUSED THE ORDERS OF THE ASSESSING OFFICER AND THE CIT(A). I FIND THAT LEARNED CIT(A) HAS GIVEN THE FINDING THAT THE ASSESSEE HAS DEDUCTED THE TDS AMOUNT CORRECTLY AND HAS FILED STATEMENT IN FORM NO. 24Q AND THEREFORE, THERE WAS SUFFICIENT COMPLIANCE OF THE PROVISIONS OF SECTION 139 OF THE ACT. THE ASSESSEE HAS FILED QUARTERLY RETURN OF THE TDS AMOUNT IN TIME. THE LEARNED CIT(A) HAS GIVEN A FINDING THAT OUT OF TOTAL 195 DEDUCTEES, ONLY 18 INVALID PERMANENT ACCOUNT NUMBERS OF THE DEDUCTEES W ERE GIVEN BY THE ASSESSEE, WHO IS THE EXECUTIVE EN GINEER, PANCHAYATI RAJ, REWARI. HE HAS CONCLUDED THAT THERE WAS NO MENS REA NOR THERE WAS A GUILTY MIND ON THE PART OF THE ASSESSEE. THE LEARNED CIT(A) HAS HELD THAT THE ASSESSING OFFICER HAS FAILED TO APPR ECIATE THE FACT THAT IT WAS NOT THE INTENTION OF THE ASSESSE TO DERIVE ANY BENEFIT WHATSOEVER, BY FILING THE WRONG 4 IT A NOS. 141 & 142/DEL/2014 4 PERMANENT ACCOUNT NUMBERS AND THE PERMANENT ACCOUNT NUMBERS WERE CORRECTED AFTER ASCERTAINING THE SAME FROM THE RESPECTIVE DEDUCTEES. THE LEA RNED CIT(A) HAS FURTHER RECORDED IN HER APPELLATE ORDER THAT FROM THE FACTS IT IS EVIDENT THAT THE ASSESSEE HAS FILED TDS CORRECTION STATEMENT IMMEDIATELY ON RECEIPT OF SHOW CAUSE NOTICE GENERATED BY THE SYSTEM AND A COPY OF ACKNOWLEDGEMENT WAS SENT TO THE ASSESSING OFFICER. THE INVALID/MISSING PERMANENT ACCOUNT NUMBERS HAVE BEEN MADE GOOD BY THE ASSESSEE BY FILING CORRECTION STATEMENTS WELL BEFORE THE ISSUE OF FINAL PENALTY NOTICE AND THE PENALTY WAS CANCELLED IN VIEW OF THE DECISION OF HON BLE SUPREME COU RT IN THE CASE OF HINDUSTAN STEEL LTD. VS. STATE OF ORISSA, (1972) 83 ITR 26 . I FIND THAT THE ASSESSEE HAS SUBSTANTIALLY COMPLIED WITH THE LEGAL PROVISIONS BY DEDUCTING THE TAX AT SOURCE CORRECTLY AND DEPOSITING THE SAME TO THE CREDIT OF THE CENTRAL GOVERN MENT IN TIME. THE ASSESSEE HAS ALSO FILED STATEMENT IN FORM NO. 24Q IN TIME AND THE QUARTERLY RETURNS WERE ALSO FILED TIMELY. REGARDING INVALID PERMANENT ACCOUNT NUMBERS IN CASE OF 18 DEDUCTEES OUT OF TOTAL 195, I FIND THAT THE LEARNED CIT(A) HAS GIVEN A S PECIFIC FINDING THAT THE ASSESSEE HAS FILED TDS CORRECTION STATEMENT IMMEDIATELY ON RECEIPT OF SHOW CAUSE NOTICE GENERATED BY THE SYSTEM AND WELL BEFORE THE ISSUE OF FINAL PENALTY NOTICE. THE MISTAKE BEING BONA FIDE AND THE REQUIREMENT OF LAW HAVING BEEN C OMPLIED WITH BY THE ASSESSEE, I HOLD THAT THERE IS NO MISTAKE IN THE ORDER OF THE LEARNED CIT(A) IN 5 IT A NOS. 141 & 142/DEL/2014 5 D ELETING THE PENALTIES IMPOSED UNDER SECTION 272B OF THE ACT AND ACCORDINGLY GROUNDS RAISED BY THE REVENUE IN BOTH THE APPEALS ARE DISMISSED. 7 . IN THE RESULT, BOTH THE APPEALS OF THE REVENUE ARE DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON 03.07.2015 . SD/ - ( G.C. GUPTA ) VICE PRESIDENT DATED: 03.07.2015 *RK/ - COPY OF THE ORDER FORWARDED TO: 1. APPELLANT 2. RESPONDENT 3. CIT 4. CIT(A) 5. D R 6. GUARD FILE TRUE CO PY BY ORDER ASSISTANT REGISTRAR