M/s World Wide Immigration Consultancy Service Ltd., Chandigarh V. JCIT (TDS), Chandigarh

ITA 21/CHANDI/2015

• Counselvise Citation: [2015] 140 COUNSELVISE.COM (IT) 90091 (ITAT-CHANDIGARH)
• Duration Of Justice: 3 month(s) 11 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 17-04-2015
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: A
• Next Hearing Date: 13-04-2015
• Assessment Year: 2012-2013
• Appeal Filed On: 06-01-2015
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: S K MITTAL
• Keywords: Reasonable cause

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL CHANDIGARH BENCH A, CHANDIGARH BEFORE SHRI BHAVNESH SAINI, JUDICIAL MEMBER AND SHRI T.R.SOOD, ACCOUNTANT MEMBER ITA NOS. 20 TO 23/CHD/2015 (ASSESSMENT YEAR : 2012-13) WORLD WIDE IMMIGRATION VS. THE J.C.I.T.(TDS), CONSULTANCY SERVICE LTD., CHANDIGARH. SECTOR 22-C, CHANDIGARH. PAN: AAACW1564A (APPELLANT) (RESPONDENT) APPELLANT BY : SHRI TEJ MOHAN SINGH RESPONDENT BY : SHRI S.K.MITTAL, DR DATE OF HEARING : 16.04.2015 DATE OF PRONOUNCEMENT : 17.04.2015 O R D E R PER BHAVNESH SAINI, J.M. : ALL THESE APPEALS FILED BY THE ASSESSEE ARE DIRECTED AGAINST THE DIFFERENT ORDERS OF LEARNED COMMISSIONER OF INCOME TAX(APPEALS)-I, CHANDIGARH DATED 28.11.2014, FOR ASSESSMENT YEAR 2012-13 (FINANCIAL YEAR 2011-12), CHALLENGING THE LEVY OF P ENALTY UNDER SECTION 272A(2)(K) OF THE INCOME TAX ACT, 196 1. 2. BRIEFLY, THE FACTS OF THE CASE ARE THAT THE PE RSON RESPONSIBLE HAS FAILED TO FILE QUARTERLY TCS RETUR NS IN FORM NO.27EQ FOR TWO QUARTERS BY RESPECTIVE DUE DATES. 2 SIMILARLY THE PERSON RESPONSIBLE HAS FAILED TO FI LE E-TDS RETURNS IN TIME AS PER THE REQUIREMENTS OF THE PROV ISIONS OF LAW. THE ASSESSING OFFICER ACCORDINGLY VIDE SEPAR ATE ORDERS LEVIED THE PENALTIES UNDER SECTION 272A(2)(K) OF TH E INCOME TAX ACT. 3. THE LEARNED CIT (APPEALS) CONFIRMED THE LEVY OF PENALTIES AND DISMISSED ALL THE APPEALS OF THE ASSE SSEE. 4. WE HAVE HEARD THE LEARNED REPRESENTATIVES OF BO TH THE PARTIES AND PERUSED THE MATERIAL AVAILABLE ON R ECORD. THE ASSESSEE AT THE PENALTY STAGE SUBMITTED BEFORE THE ASSESSING OFFICER THAT THE DELAY IN FILING OF THE R EQUIRED RETURNS WAS DUE TO SOME UNAVOIDABLE CIRCUMSTANCES A S THEIR ACCOUNTANT WAS HAVING FAMILY PROBLEM AND COULD NOT DEVOTE PROPER TIME. THE ASSESSEE ALSO CLAIMED THAT THE D ELAY IN FILING THE RETURNS WAS NOT INTENTIONAL. THE ASSES SING OFFICER WAS, HOWEVER, NOT SATISFIED WITH THE REPLY OF THE ASSESSEE AND LEVIED PENALTIES UNDER THE ABOVE PROVI SIONS OF LAW. THE LEARNED CIT (APPEALS) BY REFERRING OF TH E RELEVANT PROVISIONS OF LAW NOTICED THAT THE ASSESSEE HAS NOT FILED THE REQUIRED TCS AND TDS RETURNS BY RESPECTIVE DUE DATE S AS PRESCRIBED BY RULES. IT WAS NOTED THAT MERELY BEC AUSE NO LOSS IS CAUSED TO THE REVENUE, THE PENALTIES ARE NO T LEVIABLE, IS NOT RELEVANT BECAUSE IT WOULD GO AGAINST THE INT ENTION OF THE LEGISLATURE IN NOT FILING THE RETURNS WITHIN TH E PRESCRIBED TIME. THE LEARNED CIT (APPEALS), THERE FORE, DISMISSED THE APPEALS OF THE ASSESSEE. THE LEARNE D COUNSEL FOR ASSESSEE FILED THE AFFIDAVIT OF SHRI VIJAY KUMA R DOGRA, 3 WHO CLAIMED TO BE LOOKING AFTER THE ACCOUNTS DEPART MENT OF THE ASSESSEE. IN THE AFFIDAVIT, IT WAS STATED THA T HE WAS HAVING AILING FATHER SHRI NANAK CHAND, SO WENT INTO DEPRESSION AFTER THE DEATH OF HIS MOTHER ON 28.1.20 08. FURTHER DUE TO HEALTH PROBLEM IN FINANCIAL YEAR 201 1-12 HE COULD NOT ATTEND HIS OFFICIAL DUTIES REGULARLY. T HEREFORE, THERE WAS DELAY IN FILING THE TCS/TDS RETURNS. ONE CERTIFICATE FROM GOPAL HOSPITAL IS FILED. THE LEA RNED COUNSEL FOR ASSESSEE, THEREFORE, STATED THAT IT WAS A REASONABLE CAUSE FOR FAILURE TO COMPLY WITH THE PRO VISIONS OF LAW. 5. ON THE OTHER HAND, THE LEARNED D.R FOR THE REVENUE STRONGLY RELIED UPON THE ORDERS OF THE AUTH ORITIES BELOW. 6. THE AFFIDAVIT IS FILED FOR THE FIRST TIME BEFOR E THE TRIBUNAL AND NO AFFIDAVIT WAS FILED BEFORE THE AUTH ORITIES BELOW. THE FACTS STATED IN THE AFFIDAVIT WERE NOT PLEADED BEFORE THE AUTHORITIES BELOW AS WELL. THE MOTHER O F THE DEPONENT SHRI VIJAY KUMAR DOGRA DIED IN JANUARY, 20 08, WHICH HAS NO CONNECTION WITH THE ASSESSMENT YEAR 20 12-13. IT WAS FURTHER CLAIMED IN THE AFFIDAVIT THAT HE WAS HAVING HEALTH PROBLEMS IN ASSESSMENT YEAR UNDER APPEAL BUT THE CE RTIFICATE DO NOT SHOW IF HE WAS NOT FIT TO RESUME THE DUTIES. NO DETAILS OF PROPER ILLNESS OR DIAGNOSIS PROVIDED TO THE DEPONENT HAVE BEEN MENTIONED IN THE CERTIFICATE. NO SERIAL NUMBER ON THE LETTER HEAD IS PROVIDED TO PROVE THE 4 GENUINENESS OF THE MEDICAL CERTIFICATE. IN THE AB SENCE OF ANY DETAIL IN SUCH CERTIFICATE AND FURTHER WHEN NO SUCH CERTIFICATE OR AFFIDAVIT WERE FILED BEFORE THE AUTH ORITIES BELOW WOULD CLEARLY LEAD TO THE CONCLUSION THAT IT IS AN AFTER THOUGHT STORY MADE UP BY THE ASSESSEE TO CLAIM REAS ONABLE CAUSE FOR FAILURE TO COMPLY WITH THE PROVISIONS OF LAW BY NOT FILING THE TCS AND TDS RETURNS ON TIME. THE ASSES SEE MERELY CLAIMED BEFORE THE ASSESSING OFFICER AT THE PENALTY STAGE THAT DUE TO FAMILY PROBLEM OF ACCOUNTANT HE C OULD NOT DEVOTE PROPER TIME. HOWEVER, NO SUCH FAMILY PROBL EM HAS BEEN EXPLAINED AT ALL AND THE ILLNESS OF THE ACCOUN TANT WAS NEVER PLEADED BEFORE THE AUTHORITIES BELOW. THUS T HE ASSESSEE FAILED TO EXPLAIN IF THERE WAS ANY REASONA BLE CAUSE FOR FAILURE TO COMPLY WITH THE PROVISIONS OF LAW. DURING THE COURSE OF ARGUMENTS, THE LEARNED COUNSEL FOR ASSESS EE STATED THAT THE ACCOUNTANT WAS PAID FULL SALARY DUR ING THE ASSESSMENT YEAR UNDER APPEAL WOULD SHOW THAT WHEN H E WAS PAID FULL SALARY DURING THE YEAR UNDER CONSIDERATIO N THERE WAS NO QUESTION OF NOT DEVOTING TIME BY THE ACCOUNT ANT FOR FILING THE RETURNS WITHIN THE PRESCRIBED TIME. TH US THE ASSESSEE HAS MISERABLY FAILED TO PROVE IF THERE WAS ANY REASONABLE CAUSE FOR FAILURE TO COMPLY WITH THE PRO VISIONS OF LAW. IN THE ABSENCE OF ANY CAUSE TO EXPLAIN DELAY IN FILING THE RETURNS WITHIN THE TIME PRESCRIBED IN LAW, WE D O NOT FIND ANY ERROR IN THE ORDERS OF THE AUTHORITIES BELOW IN LEVYING AND CONFIRMING THE PENALTIES AGAINST THE ASSESSEE. THE 5 APPEALS OF THE ASSESSEE HAVE NO MERITS AND ACCORDIN GLY DISMISSED. 7. IN THE RESULT, ALL THE APPEALS FILED BY THE ASS ESSEE ARE DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON THIS 17 TH DAY OF APRIL, 2015. SD/- SD/- (T.R.SOOD) (BHAVNESH SAINI) ACCOUNTANT MEMBER JUDICIAL MEMBER DATED : 17 TH APRIL, 2015 *RATI* COPY TO: THE APPELLANT/THE RESPONDENT/THE CIT(A)/TH E CIT/THE DR. ASSISTANT REGISTRAR, ITAT, CHANDIGARH