M/s Advanced Micro Devices Pvt. Ltd., Ambala Cantt. V. ITO (TDS), Panchkula

ITA 169/CHANDI/2012

• Counselvise Citation: [2012] 140 COUNSELVISE.COM (IT) 60817 (ITAT-CHANDIGARH)
• Duration Of Justice: 2 month(s) 7 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 18-04-2012
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: A
• Assessment Year: 2008-2009
• Appeal Filed On: 10-02-2012
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: JAI SHREE SHARMA
• Keywords: Reasonable cause
• Section: 273B; 139

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL CHANDIGARH BENCH A, CHANDIGARH BEFORE MS. SUSHMA CHOWLA, JUDICIAL MEMBER AND SHRI MEHAR SINGH, ACCOUNTANT MEMBER ITA NO.169/CHD/2012 (ASSESSMENT YEAR : 2008-09) ADVANCED MICRO DEVICES PVT. LTD., VS. THE INCOME TAX OFFICER(TDS), 21, INDL. AREA, AMBALA CANTT. PANCHKULA. PAN: AABCA0652J (APPELLANT) (RESPONDENT) APPELLANT BY : SHRI ASHOK KUMAR GOYAL RESPONDENT BY : SMT.JAISHREE SHARMA, DR DATE OF HEARING : 11.04.2012 DATE OF PRONOUNCEMENT : 18.04.2012 O R D E R PER SUSHMA CHOWLA, J.M, : THE APPEAL FILED BY THE ASSESSEE IS AGAINST THE ORD ER OF THE COMMISSIONER OF INCOME-TAX (APPEALS), ROHTAK DATED 18.11.2011 RELATING TO ASSESSMENT YEAR 2008-09 AGAINST PENALTY LEVIED UNDER SECTION 272B OF THE INCOME TAX ACT, 1961 (IN SHORT THE ACT ). 2. THE GROUNDS OF APPEAL RAISED BY THE ASSESSEE REA D AS UNDER: 1. THE LEARNED COMMISSIONER OF INCOME TAX (APPEALS),ROHTAK HAS ERRED IN LAW AND FACTS IN CONFIRMING THE ORDER OF ITO, PANCHKULA ON LEVYING PENALTY U/S 272B FOR DEFAULT U/S 139A(5B) ON THE DEDUCTOR WHEREAS THE SAME IS APPLICABLE ON DEDUCTEE FOR DEFAULT U/S 139A(5A). 2. NOTWITHSTANDING THE ABOVE GROUNDS OF APPEAL, THAT THE LEARNED COMMISSIONER OF INCOME TAX (APPEALS), ROHTAK HAS ERRED IN LAW AND FACTS IN CONFIRMING THE ORDER OF ITO PANCHKULA BY IMPOSING PENALTY OF RS.80000/- INSTEAD OF RS.10000/- AS PRESCRIBED U/S 272B OF THE INCOME TAX ACT, 1961. 3. THE BRIEF FACTS OF THE CASE ARE THAT THE ASSESSE E DURING THE YEAR UNDER CONSIDERATION HAD FILED THE TDS QUARTERLY STA TEMENT FOR THE 2 FINANCIAL YEAR 2007-08 IN FORM NO. 26Q ON 13.7.2007 . THE ASSESSING OFFICER ON THE SCRUTINY OF THE SAID E-TDS RETURN NO TED THAT THE PAN NUMBERS OF EIGHT DEDUCTEES WERE FOUND TO BE INVALID . THE ASSESSING OFFICER ISSUED SHOW CAUSE NOTICE TO THE ASSESSEE. H OWEVER, AS NO RESPONSE WAS RECEIVED FROM THE ASSESSEE, THE PENALT Y U/S 272B OF THE ACT WAS LEVIED AT RS. 80,000/-. BEFORE THE CIT(A), THE CONTENTION OF THE LD. AR FOR THE ASSESSEE WAS THAT IT HAD FILED ITS QUART ERLY TDS RETURN AND DEPOSITED TAXES AND HAD REASONABLE CAUSE FOR NOT S UBMITTING THE REQUISITE DETAILS. THE CORRECTION STATEMENT WAS FI LED ON 12.10.2011, WHICH WAS BEFORE THE LAST DATE OF HEARING. THE CIT (A) UPHELD THE LEVY OF PENALTY U/S 272B OF THE ACT. 4. ON PERUSAL OF THE RECORD, WE FIND THAT THE ISSUE RAISED THE PRESENT APPEAL IS AGAINST LEVY OF PENALTY UNDER SECTION 272 B OF THE ACT. PENALTY U/S 272B OF THE ACT IS LEVIABLE IN ALL SUCH CASES W HERE THE ASSESSEE HAS FAILED TO COMPLY WITH THE PROVISIONS OF SECTION 139 A(2) OF THE ACT. IN THE FACTS OF THE PRESENT CASE, THE ASSESSEE HAD E-F ILED ITS QUARTERLY TDS RETURN FOR THE FINANCIAL YEAR 2007-08 ON 12.10.2011 . IN THE SAID TDS RETURN, IT HAS REFLECTED INFORMATION IN RESPECT OF DEDUCTEES. HOWEVER, PAN NUMBERS OF EIGHT DEDUCTEE FURNISHED BY THE ASSE SSEE WERE FOUND TO BE INCORRECT. THE ASSESSEE FAILED TO FURNISH THE REQUISITE INFORMATION BEFORE THE ASSESSING OFFICER. HOWEVER, CORRECT PAN NUMBERS WERE LATER AVAILABLE WITH THE ASSESSEE AND THE ASSESSEE HAD FI LED REVISED COMPUTATION ON 12.10.2011. IN THE ABOVE SAID FAC TS AND CIRCUMSTANCES OF THE CASE, WE ARE OF THE VIEW, THAT THE ASSESSEE IS NOT EXIGIBLE TO LEVY OF PENALTY U/S 272B OF THE ACT. FURTHER, UNDER THE PROVISIONS OF SECTION 273B OF THE ACT, PENALTY IS NOT TO BE IMPOSED IN CA SES WHERE THE ASSESSEE HAS ESTABLISHED THAT THERE WAS REASONABLE CAUSE FOR THE FAILURE REFERRED TO IN THE RESPECTIVE SECTIONS LEVYING PENA LTY UNDER THE ACT. IN 3 THE TOTALITY OF FACTS AND CIRCUMSTANCES OF THE CASE , THE ASSESSEE HAD A BONAFIDE CAUSE FOR NOT FILING THE ABOVE SAID INFORM ATION BEFORE THE ASSESSING OFFICER WHICH THOUGH WAS AVAILABLE WITH T HE ASSESSEE AND THE REVISED COMPUTATION HAS ALSO BEEN FILED BY THE ASSE SSEE UNDER WHICH COMPLETE INFORMATION OF PAN NUMBERS OF DEDUCTEES HA VE BEEN FURNISHED. ACCORDINGLY, WE HOLD THAT THE CLAIM OF THE ASSESSEE WAS BONAFIDE AND THERE WAS A REASONABLE CAUSE FOR NOT COMPLYING WITH THE PROVISIONS OF THE ACT IN TIME. THE ASSESSEE UNDER THESE CIRCUMST ANCES IS NOT EXIGIBLE TO LEVY OF PENALTY U/S 272B OF THE ACT AND ACCORDIN GLY WE DIRECT THE ASSESSING OFFICER TO DELETE THE PENALTY LEVIED U/S 272B OF THE ACT. THE GROUND OF APPEAL NO.1 RAISED BY THE ASSESSEE IS ALL OWED AND ALTERNATE PLEA IN GROUND NO.2 IS DISMISSED. 6. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS PAR TLY ALLOWED. ORDER PRONOUNCED IN THE OPEN COURT ON THIS 18 TH DAY OF APRIL, 2012. SD/- SD/- (MEHAR SINGH) (SUSHMA CHOWLA) ACCOUNTANT MEMBER JUDICIAL MEMBER DATED : 18 TH APRIL, 2012 *RATI* COPY TO: THE APPELLANT/THE RESPONDENT/THE CIT(A)/TH E CIT/THE DR. TRUE COPY BY ORDER ASSISTANT REGISTRAR, ITAT, CHANDIGARH 4