Transcoastal Cargo & Shipping Limited, CHENNAI V. JCIT TDS Range 3, CHENNAI

ITA 2980/CHNY/2017

• Counselvise Citation: [2018] 112 COUNSELVISE.COM (IT) 5775 (ITAT-CHENNAI)
• Duration Of Justice: 1 year(s) 1 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 06-12-2018
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Assessment Year: 2011-2012
• Appeal Filed On: 05-12-2017
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: HARI GOVIND
• Assessee Lawyers: R K V SUNDAR
• Keywords: Reasonable cause; TDS
• Section: 273B

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL B BENCH, CHENNAI . . . , , ' BEFORE SHRI N.R.S. GANESAN, JUDICIAL MEMBER AND SHRI S. JAYARAMAN, ACCOUNTANT MEMBER /. I.T.A. NO. 2980/CHNY/2017 / ASSESSMENT YEAR : 2011-12 TRANSCOASTAL CARGO & SHIPPING LIMITED, 1 ST FLOOR, LCATHOLIC CENTRE, 64, ARMENIAN STREET, PARRYS, CHENNAI 600 001. [PAN: CHETO 2642D] VS. JOINT COMMISSIONER OF INCOME TAX, TDS RANGE -3, CHENNAI 600 006. ( / APPELLANT) ( #$& /RESPONDENT ) ASSESSEE BY : SHRI. R.K.V. SUNDAR, ADVOCATE REVENUE BY : SHRI. HARIGOVIND, JCIT 0 /DATE OF HEARING : 04.12.2018 0 /DATE OF PRONOUNCEMENT : 06.12.2018 / O R D E R PER S. JAYARAMAN, ACCOUNTANT MEMBER: THE ASSESSEE FILED THIS APPEAL AGAINST THE ORDER O F COMMISSIONER OF INCOME TAX (APPEALS)-17, CHENNAI IN ITA NO. 359/ 2014-15 DATED 11.09.2017 FOR ASSESSMENT YEAR 2011-12. :-2-: ITA NO. 2980/CHNY/2017 2. TRANSCOASTAL CARGO & SHIPPING LTD., THE ASSESSEE , FILED ETDS RETURNS FOR ALL THE QUARTERS FOR ASSESSMENT YEAR 20 11-12, BELATEDLY. FOR THIS DELAY, THE JOINT COMMISSIONER, TDS RANGE 3, CH ENNAI LEVIED PENALTY IN TOTAL 1,47,125/- U/S. 272A(2)(K) DATED 2 8.05.2014. AGGRIEVED, THE ASSESSEE FILED APPEAL BEFORE THE CIT (A). THE CIT(A) DISMISSED THE APPEAL. 3. AGAINST THE ORDER OF THE CIT(A), THE ASSESSEE FI LED THIS APPEAL WITH THE FOLLOWING GROUNDS OF APPEAL: 1. THE ORDER OF THE COMMISSIONER OF INCOME TAX (AP PEALS) IS OPPOSED TO THE FACTS AND CIRCUMSTANCES OF THE CASE AND LAW. 2. THE COMMISSIONER (APPEALS) ERRED IN CONFIRMING T HE ORDER OF THE JCLT LEVYING PENALTY OF RS.147125/- U/S 272A(2)(K) OF TH E ACT FOR DELAY IN FILING OF TDS STATEMENTS U/S 200(3) INSPITE OF THE EXPLANA TION RENDERED BY THE APPELLANT FOR SUCH DELAY. 3. THE COMMISSIONER (APPEALS) ERRED IN NOT SEEING T HAT THE APPELLANT COMPANY THOUGH UNDERGOING SERIOUS FINANCIAL AND ADM INISTRATIVE DIFFICULTIES AT THE RELEVANT TIME HAD DEDUCTED THE TDS AMOUNTS AND PAID THE SAME TO THE CREDIT OF THE GOVERNMENT AND THE DE LAY WAS IN THE FILING OF THE E-TDS RETURNS ONLY. 4. THE COMMISSIONER (APPEALS) ERRED IN SUSTAINING T HE PENALTY LEVIED ON TECHNICAL REASONS OVERLOOKING THE FACT THAT THE APP ELLANT COMPANYS SHIPS HAD BEEN ARRESTED, BANK ACCOUNTS FROZEN AND ALL THE STAFF HAD LEFT THE COMPANY, AND THE CHARTERED ACCOUNTANT OF THE COMPAN Y WAS SUFFERING FROM BRAIN TUMOUR TO WHICH HE SUCCUMBED RESULTED IN INABILITY TO FOLLOW UP THE MATTER AND HENCE THE DELAY IN FILING OF E-TD S RETURNS OCCURRED, WHICH CONSTITUTED A REASONABLE CAUSE ENVISAGED U/S 273B OF THE ACT. :-3-: ITA NO. 2980/CHNY/2017 5. FOR THESE AND OTHER GROUNDS THAT MAY BE ADDUCED AT THE TIME OF HEARING OF THE APPEAL THE APPELLANT PRAYS THAT THE HONBLE TRIBUNAL BE PLEASED TO CANCEL THE PENALTY LEVIED, ALLOW THE APP EAL AND RENDER JUSTICE. 4. THE AR SUBMITTED THOUGH THE ASSESSEE HAS FILED R ETURNS BELATEDLY, PAID ALL THE DUES WITH RETURNS AND HENCE PLEADED FO R DELETION OF PENALTY ON THE ABOVE GROUNDS. FURTHER, HE INVITED OUR ATTEN TION TO THE CONTENTS OF THE ASSESSEES LETTER DATED 21.05.2014 FILED BE FORE THE JCIT, THE RELEVANT PORTION IS EXTRACTED AS UNDER: TRANSCOASTAL CARGO & SHIPPING LTD (TCSL) WAS IN FI NANCIAL DIFFICULTY EVER SINCE THE GLOBAL MELTDOWN OF 2008. THE CASH FLOW WAS VERY BADLY AFFECTED RESULTING IN THE CLOSING DOWN OF COMMERCIAL OPERATIONS IN THE FY 2010-1:1. DURING THIS PERIOD, I LOST ALL MY STAFF AND WAS UNA BLE TO CARRY OUT STATUTORY DUTIES IN TIME. THOUGH THE TDS WAS PAID, TO THE DEPARTMENT, SINCERE LY REGRET THE DELAY IN FILING AND HUMBLY REQUEST YOU TO WAIVE THE PENALTY THAT IS PRESCRIBED U/S 272A(2) OF THE INCOME TAX ACT 1961. AND SUBMITTED THAT ON THESE REASONABLE CAUSES, THE AO WAS REQUESTED NOT TO LEVY PENALTY AND THEREAFTER PLEADED BEFORE T HE LD CIT(A) ON VARIOUS GROUNDS. IN SPITE OF THE ABOVE REASONABLE C AUSES , UNFORTUNATELY THE LD CIT(A) UPHELD THE LEVY AND HENCE PLEADED TO DELETE THE SAME. PER CONTRA, THE LD DR SUPPORTED THE ORDERS OF THE L OWER AUTHORITIES. 4. WE HEARD THE RIVAL SUBMISSIONS AND GONE THROUGH RELEVANT MATERIAL. WE FIND THAT THE LOWER AUTHORITIES HAVE NOT DISPUTE D THE FACTS CANVASSED :-4-: ITA NO. 2980/CHNY/2017 BY THE ASSESSEE, THEREFORE, THERE WERE REASONABLE C AUSES FOR NON-LEVY OF PENALTY AND HENCE WE DIRECT THAT THE IMPUGNED PENAL TY BE DELETED. THE ASSESSEES APPEAL IS ALLOWED. 5. IN THE RESULT , THE ASSESSEES APPEAL IS AL LOWED. ORDER PRONOUNCED ON THURSDAY, THE 06 TH DAY OF DECEMBER, 2018 AT CHENNAI. SD/- ( . . . ) (N.R.S. GANESAN) /JUDICIAL MEMBER SD/- ( ) (S. JAYARAMAN) /ACCOUNTANT MEMBER /CHENNAI, 5 /DATED: 06 TH DECEMBER, 2018 JPV 0#6787 /COPY TO: 1. & / APPELLANT 2. #$& /RESPONDENT 3. : ) ( /CIT(A) 4. : /CIT 5. 7# /DR 6. = /GF