Muncipal Council Sailu, Parbhani V. Income-tax Officer ,

ITA 2603/PUN/2016

• Counselvise Citation: [2019] 118 COUNSELVISE.COM (IT) 5229 (ITAT-PUNE)
• Duration Of Justice: 2 year(s) 2 month(s) 20 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 06-02-2019
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: A
• Assessment Year: 2012-2013
• Appeal Filed On: 16-11-2016
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: K J KAWADE
• Keywords: Reasonable cause

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL PUNE BENCH A , PUNE , , . , BEFORE MS. SUSHMA CHOWLA, JM AND SHRI D. KARUNAKARA RAO , AM . / ITA NO. 2 603 /P U N/201 6 / ASSESSMENT YEAR : 20 1 2 - 1 3 MUNICIPAL COUNCIL SAILU STATION ROAD, SAILU 431503 . / APPELLANT TAN: NSKMO5197A VS. THE INCOME TAX OFFICER(TDS), AURANGABAD . / RESPOND ENT / APPELLANT BY : SHRI PRAMOD SHINGTE / RESPONDENT BY : SHRI K.J. KAWADE / DATE OF HEARING : 1 2 . 12 .201 8 / DATE OF PRONOUNCEMENT: 06 . 0 2 .201 9 / ORDER PER SUSHM A CHOWLA, J M : THE APPEAL FILED BY ASSESSEE IS AGAINST ORDER OF CIT (A) - 1 , AURANGABAD , DATED 1 6 . 0 9 .20 1 6 RELATING TO ASSESSMENT YEAR 20 1 2 - 1 3 AGAINST PENALTY LEVIED UNDER SECTION 272A(2)(K) OF THE INCOME - TAX ACT , 1961 (IN SHORT THE ACT) . 2. THE ASSESSEE HA S RAISED THE FOLLOWING GROUND OF APPEAL: - ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE AND IN LAW, THE LEARNED ASSESSING OFFICER HAS ERRED IN LEVYING THE PENALTY UNDER SEC.272A(2)(K) OF INCOME TAX ACT 1961 FOR A SUM OF RS.1,01,500/ - FOR ALLEGED DEFAUL T OF DELAY IN FILING TDS/TCS RETURN THEREBY DISREGARDING APPELLANTS GENUINE REASONS IN SUBMITTING THE RETURN BELATEDLY. ITA NO. 2603 /P U N/20 1 6 MUNICIPAL COUNCIL SAILU 2 3. THE ONLY ISSUE RAISED IN THE PRESENT APPEAL IS AGAINST LEVY OF PENALTY UNDER SECTION 272A(2)(K) OF THE ACT AT 1,01,500/ - . 4. BRI EFLY, IN THE FACTS OF THE CASE, THE ASSESSEE HAD FURNISHED QUARTERLY TDS RETURNS IN FORM NO.26Q AFTER THE TIME LIMIT PRESCRIBED UNDER SECTION 200(3) OF THE ACT FOR ALL THE QUARTERS OF FINANCIAL YEAR. THE ASSESSING OFFICER HELD THE ASSESSEE TO BE IN DEFAUL T AND LEVIED PENALTY OF 1,01,500/ - . THE PLEA OF ASSESSEE BEFORE THE CIT(A) THAT IT HAD DEDUCTED TAXES AND PAID THE SAME BUT COULD NOT FILE THE TDS RETURNS BECAUSE OF UNAWARENESS OF LAW AND HENCE, THERE WAS NO MALAFIDE INTENTION IN NOT FILING THE SAID RETURNS WITHIN TIME, WAS N OT ACCEPTED BY THE CIT(A) AND PENALTY LEVIED WAS UPHELD. 5. THE ASSESSEE IS IN APPEAL AGAINST THE ORDER OF CIT(A) AND THE LEARNED AUTHORIZED REPRESENTATIVE FOR THE ASSESSEE POINTED OUT THAT THOUGH THERE WAS DELAY IN FILING THE PRESENT TDS RETURNS LATE BUT THE ASSESSEE COULD NOT BE HELD RESPONSIBLE FOR LEVY OF PENALTY TILL THE DATE OF PAYING TAXES. 6. THE LEARNED DEPARTMENTAL REPRESENTATIVE FOR THE REVENUE POINTED OUT THAT THE ISSUE STANDS SQUARELY COVERED AGAINST THE ASSESSEE BY THE ORDER OF PUNE BENCH OF TRIBUNAL IN SERIES OF CASES WITH LEAD ORDER IN NAV MAHARASHTRA VIDYALAYA VS. ADDL.CIT(TDS) IN ITA NO.832/PN/2016, RELATING TO ASSESSMENT YEAR 2011 - 12, ORDER DATED 07.10.2016. 7. WE HAVE HEARD THE RIVAL CONTENTIONS AND PERUSED THE RECORD. THE ISSUE WHICH ARISES IN THE PRESENT APPEAL IS AGAINST LEVY OF PENALTY UNDER SECTION 272A(2)(K) OF THE ACT. ITA NO. 2603 /P U N/20 1 6 MUNICIPAL COUNCIL SAILU 3 8. WE FIND THAT SIMILAR ISSUE HAS BEEN DECIDED BY THE PUNE BENCH OF TRIBUNAL IN BUNCH OF APPEALS WITH LEAD ORDER IN NAV MAHARASHTRA VIDYALAYA VS. ADDL.CIT(TDS) (S UPRA), WHEREIN THE TRIBUNAL HELD THAT IF THERE IS REASONABLE CAUSE FOR THE DEFAULT, THEN PENALTY IS NOT TO BE LEVIED. WHERE THE ASSESSEE HAD DEFAULTED IN NOT DEPOSITING THE TAX DEDUCTED AT SOURCE IN TIME, THEN IN SUCH CASES, THE RETURNS WERE DELAYED AND P ENALTY UNDER SECTION 272A(2)(K) OF THE ACT IS LEVIABLE; HOWEVER, THE SAME IS TO BE RESTRICTED FROM THE DATE OF PAYMENT OF TDS TO THE DATE OF FILING E - TDS STATEMENTS SINCE E - TDS STATEMENTS CANNOT BE FILED WITHOUT PAYMENT OF TDS TO THE CREDIT OF CENTRAL GOVE RNMENT. SIMILAR RATIO HAS BEEN LAID DOWN BY THE CHANDIGARH BENCH OF TRIBUNAL IN M/S. ASHIRWAD COMPLEX VS. JCIT (TDS) IN ITA NO.895/CHD/2013, RELATING TO ASSESSMENT YEAR 2010 - 11, ORDER DATED 22.11.2013. THE LEARNED AUTHORIZED REPRESENTATIVE FOR THE ASSESS EE HAS FURNISHED THE DETAILS OF PAYMENT OF TDS AND THE DATES OF FILING TDS RETURNS BEFORE US. THE ASSESSING OFFICER IS THUS, DIRECTED TO RESTRICT LEVY OF PENALTY UNDER SECTION 272A(2)(K) OF THE ACT IN LINE WITH OUR DIRECTIONS IN EARLIER ORDER. THE ASSESSEE IS DIRECTED TO FURNISH COMPLETE DETAILS BEFORE THE ASSESSING OFFICER IN THIS REGARD. THUS, THE GROUND OF APPEAL RAISED BY ASSESSEE IS PARTLY ALLOWED. 9 . IN THE RESULT, THE APPEAL OF ASSESSEE IS PARTLY ALLOWED. ORDER PRONOUNCED ON THIS 6 TH DAY OF FEBRUARY , 201 9 . SD/ - SD/ - ( D.KARUNAKARA RAO ) (SUSHMA CHOWLA ) / ACCOUNTANT MEMBER / JUDICIAL MEMBER / PUNE ; DATED : 6 TH FEBRUARY , 201 9 . GCVSR ITA NO. 2603 /P U N/20 1 6 MUNICIPAL COUNCIL SAILU 4 / COPY OF THE ORDER IS FORWARDED TO : 1. / THE APPELLANT ; 2. / THE RESPONDENT; 3. ( ) / THE CIT(A) - 1 , AURANGABAD ; 4. THE CI T - TDS , PUNE ; 5. 6. , , / DR A , ITAT, PUNE ; / GUARD FILE . / BY ORDER , // TRUE COPY // / SR. PRIVATE SECRETARY , / ITAT, PUNE