Godawari Enterprises, Jagadhari V. ITO (TDS), Panchkula

ITA 327/CHANDI/2014

• Counselvise Citation: [2014] 140 COUNSELVISE.COM (IT) 77145 (ITAT-CHANDIGARH)
• Duration Of Justice: 2 month(s) 21 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 19-06-2014
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Assessment Year: 2009-2010
• Appeal Filed On: 28-03-2014
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: SHWETA YADAV
• Keywords: Reasonable cause

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL CHANDIGARH BENCH A, CHANDIGARH BEFORE SHRI T.R.SOOD, ACCOUNTANT MEMBER AND MS. SUSHMA CHOWLA, JUDICIAL MEMBER ITA NO.327/CHD/2014 ASSESSMENT YEAR : 2009-10 GODAWARI ENTERPRISES VS. THE INCOME TAX OFFICE R(TDS), PROP.VIKRANT GUPTA, PANCHKULA. BILASPUR ROAD, JAGADHARI. PAN: ABTPG1347 C (APPELLANT) (RESPONDENT) APPELLANT BY : NONE RESPONDENT BY : MS.SHWETA YADAV, DR DATE OF HEARING : 10.06.2014 DATE OF PRONOUNCEMENT : 19.06.2014 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), KARNAL DATED 16.09.2013 AGAINST THE PENALTY LEVIED UNDER SECTION 272B OF 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) ERRED IN LAW AS WELL AS ON FACTS WHILE CONFIRMING THE ORD ER PASSED BY LD. INCOME TAX OFFICER(TDS) U/S 272B OF INCOME TAX IMPOSING PENALTY OF RS.10000/- FOR Q4 O F P.Y.2008-09. 2. THE LEARNED COMMISSIONER OF INCOME TAX (APPEALS)PASSED ORDER FOR APPEAL FOR Q4 OF THE PREV IOUS YEAR 2008-09 AND CONFIRMED LEVY OF PENALTY OF RS.10000/-. 2 3. THE ISSUE RAISED IN THE PRESENT APPEAL IS AGAINS T LEVY OF PENALTY UNDER SECTION 272B OF THE ACT. 4. THE BRIEF FACTS OF THE CASE ARE THAT THE ASSESSE E HAD FILED E-TDS QUARTERLY STATEMENT OF DEDUCTION OF TAX IN FORM NO. 26Q RELATING TO FINANCIAL YEAR 2008-09 FILED ON 15.06.2009. OUT OF 11 TAX DEDUCTEES 2 TAX DEDUCTEES WERE FOUND TO BE INVALID/MISSING AND NO CORRECTION STATEMENT WAS FILED BY THE ASSESSEE IN THIS REGARD. THE ASSESSING OFFICER HELD THE ASSESSEE TO BE LIABLE TO PENALTY U NDER SECTION 272B OF THE ACT AND IMPOSED PENALTY OF RS.10,000/-. THE CI T (APPEALS) UPHELD THE LEVY OF PENALTY OF RS.10,000/- 5. DESPITE SERVICE OF NOTICE NONE APPEARED ON BEHAL F OF THE ASSESSEE AND BECAUSE OF SMALLNESS OF THE ISSUE AND THE ISSUE BEING COVERED, WE PROCEED TO DISPOSE OF THE PRESENT ISSUE AFTER HEARI NG THE LEARNED D.R. FOR THE REVENUE. 6. ON PERUSAL OF THE RECORD WE FIND THAT THE ASSESS EE IN FORM \NO.26Q FILED FOR 4 TH QUARTER FOR FINANCIAL YEAR 2008-09 HAD FAILED TO F URNISH CORRECT PAN NUMBERS OF 2 TAX DEDUCTEES AND NO CORRE CTION STATEMENT WAS FILED EITHER BEFORE THE ASSESSING OFFICER OR BEFORE THE CIT (APPEALS). THE ASSESSEE HAD FAILED TO APPEAR BEFORE US AND THE RE IS NO EVIDENCE ON RECORD TO ESTABLISH WHETHER ANY CORRECTION STATEMEN T HAD BEEN FILED IN THE PRESENT CASE. HOWEVER, IN THE INTEREST OF JUS TICE, WE ARE OF THE VIEW THAT WHERE THE ASSESSEE HAS FILED CORRECTION STATEM ENT EVEN AFTER PASSING OF THE ORDER OF THE AUTHORITIES BELOW, IT CANNOT BE SAID THAT THE ASSESSEE HAD NO REASONABLE CAUSE IN NOT FURNISHING THE REQUI SITE INFORMATION IN TIME. HOWEVER, IF THE ASSESSEE HAD FAILED TO FILE ANY CORRECTION STATEMENT AND ANY OF THE PAN NUMBERS ARE FOUND TO B E MISSING, THEN THE ASSESSEE IS LIABLE TO PENALTY UNDER SECTION 272B OF THE ACT EVEN FOR ONE 3 DEFAULT. IN THE ENTIRETY OF THE ABOVE SAID FACTS AND CIRCUMSTANCES AND IN THE INTEREST OF JUSTICE, WE RESTORE THIS ISSUE BACK TO THE FILE OF THE ASSESSING OFFICER TO ESTABLISH WHETHER THE ASSESSEE HAD FILED ANY CORRECTION STATEMENT IN RESPECT OF THE BALANCE 2 TA X DEDUCTEES AND DECIDE THE ISSUE IN LINE WITH OUR DIRECTIONS. THE GROUNDS OF APPEAL RAISED BY THE ASSESSEE ARE ALLOWED FOR STATISTICAL PURPOSES. 7. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS ALL OWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE OPEN COURT ON THIS 19 TH DAY OF JUNE, 2014. SD/- SD/- (T.R.SOOD) (SUSHMA CHOWLA) ACCOUNTANT MEMBER JUDICIAL MEMBER DATED : 19 TH JUNE, 2014 *RATI* COPY TO: THE APPELLANT/THE RESPONDENT/THE CIT(A)/TH E CIT/THE DR. ASSISTANT REGISTRAR, ITAT, CHANDIGARH