ITO (TDS), Panchkula V. XEN, Sub Urban Division, Jagadhari

ITA 442/CHANDI/2012

• Counselvise Citation: [2012] 140 COUNSELVISE.COM (IT) 64093 (ITAT-CHANDIGARH)
• Duration Of Justice: 7 month(s) 19 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 06-12-2012
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: A
• Next Hearing Date: 04-12-2012
• Assessment Year: 2009-2010
• Appeal Filed On: 17-04-2012
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Section: 27

Judgement Text

1 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. 442/CHD/2012 (ASSESSMENT YEAR : 2009-10) THE INCOME TAX OFFICER (TDS), VS. XEN SUB URBAN DI VISION, AAYAKAR BHAWAN, SECTOR 2, UHBNL, JAGADHRI. PANCHKULA. PAN: RTKE00744C (APPELLANT) (RESPONDENT) APPELLANT BY : NONE RESPONDENT BY : SHRI AKHILESH GUPTA, DR DATE OF HEARING : 04.12.2012 DATE OF PRONOUNCEMENT : 06.12.2012 O R D E R PER SUSHMA CHOWLA, J.M, : THE APPEAL FILED BY THE REVENUE IS AGAINST THE ORDE R OF THE COMMISSIONER OF INCOME-TAX (APPEALS), PANCHKULA DAT ED 08.02.2012 RELATING TO ASSESSMENT YEAR 2009-10 AGAINST THE PEN ALTY LEVIED U/S 272B OF THE INCOME TAX ACT, 1961 (IN SHORT THE ACT). 2. THE ASSESSEE HAS RAISED THE FOLLOWING GROUNDS OF AP PEAL: ON THE FACTS AND CIRCUMSTANCES OF THE CASE, THE LD. COMMIS SIONER OF INCOME TAX (APPEALS) HAS ERRED IN LAW IN REDUCING THE PENALTY LEVIED U/S 272B OF THE INCOME TAX ACT,1961 AMOUNTING TO RS. 4,40,000/- FOR NON QUOTING/WRONG QUOTING OF PANS IN 45 CASES IN THE TD S RETURNS 26Q FOR THE A.Y. 2009-10. THE LD. CIT (APPEALS) HAS ERRED IN LAW IN GIVING RELIEF TO THE ASSESSEE MERELY ON THE GROUND THAT THE PENALTY CAN BE LEVIED OF RS.10000/- ONLY IN VIEW OF THE DECISION OF THE ITAT, CHANDIGARH BENCH IN THE CASE OF ITO (TDS) PANCHKULA U/S AMBALA DISTT. CO-OP MILK PRODU CERS UNION LTD DATED 05-12-2011. WHILE AS PER SECTION 139A(5B) OF THE I.T. ACT 1961, REQUI RES THAT PAN OF ALL PERSONS ON BEHALF OF WHOM TAX IS DEDUCTED, SHOULD BE QUOTED IN THE QUARTERLY STATEMENT. 2 WHEN PAN OF THE TAX-DEDUCTEE IS NOT GIVEN IN THE TDS RET URN, TAX DEDUCTED FROM PAYMENT MADE TO HIM CANNOT BE POSTED TO THE ANNUAL STATEMENT OF TDS TO BE ISSUED TO HIM ON FORM NO. 26AS U/S 203AA OF THE I.T. ACT, 1961 READ WITH RULE 31AB OF THE I.T. RULE S 1962. INCONSISTENCY ON THE PART OF 'TAX DEDUCTOR' UNDER CONSIDERATION H AS LED TO THE NON- POSTING IN THE PAN LEDGER OF THE DEDUCTEES WITH THE AMOUNT OF TAX DEDUCTED ON THEIR BEHALF. THE INCOME TAX DEPARTMENT WILL HAVE, THEREFORE, DIFFICULTY IN ALLOWING THE TDS CLAIM MAD E BY HIM IN HIS OWN RETURNS OF INCOME. IT IS PRAYED THAT THE ORDER OF THE LD. CIT (APPEALS) BE C ANCELLED AND THAT OF THE ASSESSING OFFICER MAY BE RESTORED. THE APPELLANT CRAVES LEAVE TO ADD OR AMEND ANY GROUNDS OF APPEAL BEFORE THE APPEAL IS HEARD. 3. THE PRESENT APPEAL IS FILED BY THE REVENUE AGAIN ST THE ORDER OF CIT (APPEALS) IN RESTRICTING THE PENALTY LEVIED UNDER S ECTION 272B OF THE ACT FROM RS.4,50,000/- TO RS.10,000/-. 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 2008-09 FILED ON 16.6.2009 HAD DEFAU LTED IN QUOTING PAN NUMBERS OF 45 DEDUCTEES. THE PAN NUMBERS QUOTED BY THE ASSESSEE WERE FOUND TO BE INVALID AND NO CORRECTION STATEMENT WAS FILED BY THE ASSESSEE IN THIS REGARD. THE ASSESSING OFFICER HELD THE ASS ESSEE TO BE LIABLE TO PENALTY UNDER SECTION 272B OF THE ACT AND IMPOSED P ENALTY OF RS.4,50,000/-. THE CIT (APPEALS) RESTRICTED THE PE NALTY TO RS.10,000/- IN VIEW OF THE PROVISIONS OF SECTION 272B(1) OF THE ACT. 5. THE REVENUE IS IN APPEAL AGAINST THE SAID ORDER OF THE CIT (APPEALS). DESPITE VARIOUS NOTICE BEING ISSUED TO THE ASSESSEE NONE APPEARED ON BEHALF OF THE ASSESSEE ON EARLIER DATE OF HEARING AND EVEN ON THE APPOINTED DATE OF HEARING I.E. 04.12.2012. WE PROCEED TO DISPOSE OFF THE PRESENT APPEAL AFTER HEARING THE LEARNED D.R. F OR THE REVENUE. 6. THE ISSUE RAISED IN THE PRESENT APPEAL IS IN REL ATION TO LEVY OF PENALTY UNDER SECTION 272B OF THE ACT FOR THE DEFAU LT IN QUOTING OF PAN 3 NUMBERS OF THE DEDUCTEES IN THE E-TDS QUARTERLY STA TEMENT FILED IN FORM NO.24Q BY THE ASSESSEE. THE ASSESSEE IN THE SAID F ORM NO.24Q RELATING TO FINANCIAL YEAR 2008-09 HAD WRONGLY QUOTED THE PA N NUMBERS IN RESPECT OF 45 DEDUCTEES. THE ASSESSEE HAD NOT FILE D THE CORRECTION STATEMENT BEFORE THE ASSESSING OFFICER OR BEFORE PA SSING OF THE ORDER OF THE CIT (APPEALS) ALSO. IN VIEW THEREOF THOUGH THE ASSESSING OFFICER LEVIED PENALTY OF RS.4,50,000/-, THE SAME WAS RESTR ICTED TO RS.10,000/- BY THE CIT (APPEALS). THE PROVISIONS OF SECTION 27 2B(1) OF THE ACT PROVIDE THAT IF A PERSON FAILED TO COMPLY WITH THE PROVISION OF SECTION 139A, THE ASSESSING OFFICER MAY DIRECT THAT SUCH PE RSON SHALL PAY, BY WAY OF PENALTY A SUM OF RS.10,000/- . IN VIEW OF THE ABOVE SAID PROVISIONS OF THE ACT WE ARE IN AGREEMENT WITH THE ORDER OF THE CIT (APPEALS) IN RESTRICTING LEVY OF PENALTY UNDER SECT ION 272B OF THE ACT AT RS.10,000/-. THUS GROUNDS OF APPEAL RAISED BY THE REVENUE ARE DISMISSED. 7. IN THE RESULT, THE APPEAL OF THE REVENUE IS DISM ISSED. ORDER PRONOUNCED IN THE OPEN COURT ON 6 TH DAY OF DECEMBER, 2012. SD/- SD/- (T.R.SOOD) (SUSHMA CHOWLA) ACCOUNTANT MEMBER JUDICIAL MEMBER DATED : 6 TH DECEMBER, 2012 *RATI* COPY TO: THE APPELLANT/THE RESPONDENT/THE CIT(A)/TH E CIT/THE DR. ASSISTANT REGISTRAR, ITAT, CHANDIGARH