The Haryana State Cooperative Supply and Marketing Fed. Ltd., Ambala City V. ITO (TDS), Panchkula

ITA 396/CHANDI/2012

• Counselvise Citation: [2014] 140 COUNSELVISE.COM (IT) 77159 (ITAT-CHANDIGARH)
• Duration Of Justice: 2 year(s) 2 month(s) 10 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 19-06-2014
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Next Hearing Date: 02-06-2014
• Assessment Year: 2008-2009
• Appeal Filed On: 09-04-2012
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: HARDESH KANT JINDAL
• Keywords: Reasonable cause

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL CHANDIGARH BENCH B, CHANDIGARH BEFORE SHRI T.R.SOOD, ACCOUNTANT MEMBER AND MS. SUSHMA CHOWLA, JUDICIAL MEMBER ITA NO.396/CHD/2012 ASSESSMENT YEAR : 2008-09 THE HARYANA STATE COOPERATIVE VS. THE INCOME TAX OFFICER(TDS), SUPPLY & MARKETING FED. LTD., PANCHKULA. JAIN COLLEGE ROAD, AMBALA CITY. PAN: AAAJH0022R (APPELLANT) (RESPONDENT) APPELLANT BY : SHRI HARDESH KANT JINDAL RESPONDENT BY : SHRI AKHILESH GUPTA, DR DATE OF HEARING : 02.06.2014 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), ROHTAK DATED 07.02.2012 AGAINST THE PENALTY LEVIED UNDER SECTION 272B OF IN COME TAX ACT, 1961 (IN SHORT THE ACT). 2. THE ONLY GROUND OF APPEAL RAISED BY THE ASSESSEE READS AS UNDER: 1. THE LD. COMMISSIONER OF INCOME TAX APPEALS HAS ERRED IN LAW AND FACTS OF THE CASE WHILE CONFIRMING PENALTY OF RS.40000/- IMPOSED BY ITO TDS. 3. THE ONLY ISSUE RAISED IN THE PRESENT APPEAL IS A GAINST LEVY OF PENALTY UNDER SECTION 272B OF THE ACT. 2 4. THE BRIEF FACTS OF THE CASE ARE THAT THE ASSESSE E IN THE E-TDS QUARTERLY STATEMENT OF DEDUCTION OF TAX IN FORM NO. 24Q RELATING TO FINANCIAL YEAR 2007-08 FILED ON 16.07.2007 HAD DEF AULTED IN QUOTING PAN NUMBERS OF 24 TAX DEDUCTEES. THE ASSESSEE HAD FILED CORRECTION STATEMENT IN RESPECT OF PAN NUMBERS OF 20 DEDUCTEES OUT OF 24 DEDUCTEES AND IN RESPECT OF BALANCE PAN NUMBERS OF 4 DEDUCTTEES, NO CORRECTION STATEMENT WAS FILED BY THE ASSESSEE IN T HIS REGARD. THE ASSESSING OFFICER HELD THE ASSESSEE TO BE LIABLE TO PENALTY UNDER SECTION 272B OF THE ACT AND IMPOSED PENALTY OF RS.40,000/-. BEFORE THE CIT (APPEALS) THE CONTENTION OF THE ASSESSEE WAS THAT T HOUGH THE CORRECTION STATEMENT HAD BEEN FILED ON 25.10.2010 BUT PAN NUMB ERS OF 4 DEDUCTEES COULD NOT BE RECTIFIED. FURTHER IT WAS CLAIMED BY THE ASSESSEE THAT THE CORRECTION STATEMENT IN RESPECT OF BALANCE 4 DEDUCT EES HAS BEEN FILED ON 16.1.2012. HOWEVER, THE CIT (APPEALS) REJECTED THE CLAIM OF THE ASSESSEE. UPHOLDING THE LEVY OF PENALTY UNDER SECT ION 272B OF THE ACT THE CIT (APPEALS) WAS OF THE VIEW THAT AMPLE OPPORT UNITIES HAD BEEN GIVEN TO THE ASSESSEE AND THE ASSESSEE HAD FAILED T O COMPLY WITH THE REQUIREMENTS OF LAW. 5. THE LEARNED A.R. FOR THE ASSESSEE POINTED OUT TH AT THE CORRECTION STATEMENT HAS BEEN FILED. 6. THE LEARNED D.R. FOR THE REVENUE POINTED OUT THA T THERE IS NO REASONABLE CAUSE IN THE PRESENT APPEAL AS THE ASSES SEE HAD FAILED TO FURNISH THE REQUISITE DOCUMENTS IN TIME BEFORE THE AUTHORITIES BELOW. 7. WE FIND THAT IDENTICAL ISSUE OF LEVY OF PENALTY UNDER SECTION 272B OF THE ACT AROSE BEFORE THE CHANDIGARH BENCH OF TRI BUNAL IN ITA NO.1023/CHD/2012 IN THE CASE OF THE BANK OF BARODA, CHANDIGARH VS. 3 ITO, TDS-II, CHANDIGARH AND THE TRIBUNAL VIDE ORDER DATED 26.6.2013 HELD AS UNDER: 8. WE ARE OF THE VIEW THAT NO PURPOSE WOULD BE SER VED BY SENDING THE ISSUE BACK TO THE FILE OF THE CIT(APPEA LS) FOR ADJUDICATING THE SAID ISSUE, BOTH IN VIEW OF THE FA CTS AND CIRCUMSTANCES OF THE CASE AND ALSO BECAUSE OF THE S MALLNESS OF THE ISSUE RAISED BEFORE US. THE ASSESSEE IN THE WRITTE N SUBMISSIONS FILED HAS CLAIMED THAT IT HAD FILED A REVISED/CORRE CTION STATEMENT ON 5.9.2011 AND THE ACKNOWLEDGEMENT OF THE SAID CORREC TION STATEMENT IS ALSO ENCLOSED WITH THE WRITTEN SUBMISSIONS. IN C ASE WHERE THE ASSESSEE HAS ALREADY FURNISHED THE DETAILS, WHICH T HOUGH WERE NOT FURNISHED BEFORE THE AO, WE FIND MERIT IN THE CLAIM OF THE ASSESSEE THAT ONCE CORRECTION STATEMENT HAS BEEN FILED IN RE SPECT OF PAN DETAILS OF BALANCE DEDUCTEE (1) THERE IS NO MERIT I N THE LEVY OF PENALTY U/S 272B OF THE ACT. IN VIEW OF THE ABOVES AID FACTS, WE DIRECT THE AO TO VERIFY THE CLAIM OF THE CORRECTION STATEMENT FILED BY THE ASSESSEE AND IN CASE THE ASSESSEE HAS SO FIL ED THE CORRECTION STATEMENT FOR THE RELEVANT PERIOD, THEN NO PENALTY IS LEVIABLE U/S 272B OF THE ACT. ACCORDINGLY, THE ISSUE IS SET ASI DE TO THE FILE OF THE AO TO DECIDE THE SAME IN LINE WITH OUR DIRECTIO NS. THE GROUND OF APPEAL NO.2 RAISED BY THE ASSESSEE IS, THUS ALLO WED FOR STATISTICAL PURPOSES. 8. IN THE FACTS OF THE PRESENT CASE THE ASSESSEE HA S FILED CORRECTION STATEMENT FIRST ON 25.10.2010 AND THEN O N 16.1.2012 AND HAS CORRECTED THE PAN NUMBERS OF 24 DEDUCTEES WHICH WERE IN DEFAULT. THE ASSESSEE HAVING CORRECTED THE PAN NUMB ERS, THERE IS NO MERIT IN LEVYING ANY PENALTY UNDER SECTION 272B OF THE ACT AND THE SAME IS DELETED. HOWEVER, THE SAID ASPECT SHAL L BE VERIFIED BY THE ASSESSING OFFICER IN LINE WITH OUR DIRECTIONS I N THE EARLIER CASE. THE GROUND OF APPEAL RAISED BY THE ASSESSEE IS ALLO WED FOR STATISTICAL PURPOSES. 9. 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 4