Central Bank of India, Ambala City V. ITO (TDS), Panchkula

ITA 465/CHANDI/2012

• Counselvise Citation: [2012] 140 COUNSELVISE.COM (IT) 60897 (ITAT-CHANDIGARH)
• Duration Of Justice: 1 month(s) 29 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 26-06-2012
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Next Hearing Date: 21-06-2012
• Assessment Year: 2008-2009
• Appeal Filed On: 27-04-2012
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: HARDESH JINDAL
• Keywords: Reasonable cause
• Section: 273B; 139

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.465/CHD/2012 (ASSESSMENT YEAR : 2009-10) CENTRAL BANK OF INDIA, VS. THE INCOME TAX OFFICE R(TDS), TANDOORA BAZAR, PANCHKULA. AMBALA CITY. PAN: RTKC01659A (APPELLANT) (RESPONDENT) APPELLANT BY : SHRI HARDESH JINDAL RESPONDENT BY : SHRI AKHILESH GUPTA, DR DATE OF HEARING : 21.06.2012 DATE OF PRONOUNCEMENT : 26.06.2012 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 RELATING TO ASSESSMENT YEAR 2009-10 AGAINST PENALTY LEVIED UNDER SECTION 272B OF THE INCOME TAX ACT, 1961 (IN SHORT THE ACT ). 2. THE ASSESSEE HAS RAISED FOLLOWING GROUND OF APPE AL: 1. THE LD. COMMISSIONER OF INCOME TAX (APPEALS), HAS ERRED IN LAW AND FACTS OF THE CASE WHILE REDUCING THE PENALTY FROM RS.60000/- TO RS.50000/- INSTEAD OFF GIVING TOTAL RELIEF TO THE ASSESSEE. THE RELIEF IS REQUIRED FOR REMAINING PENALTY OF RS.50000/- 3. THE BRIEF FACTS OF THE CASE ARE THAT THE ASSESSE E DURING THE YEAR UNDER CONSIDERATION HAD FILED THE E-TDS QUARTERLY S TATEMENT FOR THE FINANCIAL YEAR 2008-09 IN FORM NO. 24Q ON 15.6.2009 . THE ASSESSING OFFICER ON THE SCRUTINY OF THE SAID E-TDS RETURN NO TED THAT THE PAN NUMBERS OF SIX DEDUCTEES WERE FOUND TO BE INVALID. THE ASSESSING 2 OFFICER ISSUED SHOW CAUSE NOTICE TO THE ASSESSEE. H OWEVER, AS NO RESPONSE WAS RECEIVED FROM THE ASSESSEE, THE PENALT Y U/S 272B OF THE ACT WAS LEVIED AT RS. 60,000/-. BEFORE THE CIT(A), THE CONTENTION OF THE LD. AR FOR THE ASSESSEE WAS THAT IT HAD FILED ITS QUART ERLY TDS RETURN AND DEPOSITED TAXES AND HAD REASONABLE CAUSE FOR NOT S UBMITTING THE REQUISITE DETAILS. THE CORRECTION STATEMENT OF FIV E DEDUCTEES WAS FILED ON 13.9.2010, WHICH WAS BEFORE THE LAST DATE OF HEA RING. PAN OF ONE SMT.SHARDA WAS NOT AVAILABLE BECAUSE SHE WAS ONLY A PART TIME SWEEPER AND THE TOTAL SALARY PAID TO HER WAS BELOW THE TAXA BLE LIMIT. CIT(A) UPHELD THE LEVY OF PENALTY U/S 272B OF THE ACT UPTO RS.50,000/-. 4. ON PERUSAL OF THE RECORD, WE FIND THAT THE ISSUE RAISED THE PRESENT APPEAL IS AGAINST LEVY OF PENALTY UNDER SECTION 272 B OF THE ACT. PENALTY U/S 272B OF THE ACT IS LEVIABLE IN ALL SUCH CASES W HERE THE ASSESSEE HAS FAILED TO COMPLY WITH THE PROVISIONS OF SECTION 139 A(2) OF THE ACT. IN THE FACTS OF THE PRESENT CASE, THE ASSESSEE HAD E-F ILED ITS QUARTERLY TDS RETURN FOR THE FINANCIAL YEAR 2008-09 ON 15.6.2009. IN THE SAID TDS RETURN, IT HAD REFLECTED INFORMATION IN RESPECT OF DEDUCTEES. HOWEVER, PAN NUMBERS OF SIX DEDUCTEES FURNISHED BY THE ASSES SEE WERE FOUND TO BE INCORRECT. THE ASSESSEE FAILED TO FURNISH THE REQUISITE INFORMATION BEFORE THE ASSESSING OFFICER. HOWEVER, CORRECT PAN NUMBERS WERE LATER AVAILABLE WITH THE ASSESSEE AND THE ASSESSEE HAD FI LED REVISED COMPUTATION ON 13.9.2010. ONE DEDUCTEE WAS PART T IME SWEEPER AND TOTAL SALARY WAS BELOW TAXABLE LIMIT. IN THE ABOVE SAID FACTS AND CIRCUMSTANCES OF THE CASE, WE ARE OF THE VIEW, THAT THE ASSESSEE IS NOT EXIGIBLE TO LEVY OF PENALTY U/S 272B OF THE ACT. F URTHER, UNDER THE PROVISIONS OF SECTION 273B OF THE ACT, PENALTY IS N OT TO BE IMPOSED IN CASES WHERE THE ASSESSEE HAS ESTABLISHED THAT THERE WAS REASONABLE CAUSE FOR THE FAILURE REFERRED TO IN THE RESPECTIVE SECTI ONS LEVYING PENALTY 3 UNDER THE ACT. IN THE TOTALITY OF FACTS AND CIRCUMS TANCES OF THE CASE, THE ASSESSEE HAD A BONAFIDE CAUSE FOR NOT FILING THE AB OVE SAID INFORMATION BEFORE THE ASSESSING OFFICER WHICH THOUGH WAS AVAIL ABLE WITH THE ASSESSEE AND THE REVISED COMPUTATION HAS ALSO BEEN FILED BY THE ASSESSEE UNDER WHICH COMPLETE INFORMATION OF PAN NUMBERS OF DEDUCTEES HAVE BEEN FURNISHED. ACCORDINGLY, WE HOLD THAT THE CLAIM OF THE ASSESSEE WAS BONAFIDE AND THERE WAS A REASONABLE CAUSE FOR NOT C OMPLYING WITH THE PROVISIONS OF THE ACT IN TIME. THE ASSESSEE UNDER THESE CIRCUMSTANCES IS NOT EXIGIBLE TO LEVY OF PENALTY U/S 272B OF THE ACT AND ACCORDINGLY WE DIRECT THE ASSESSING OFFICER TO DELETE THE PENALTY LEVIED U/S 272B OF THE ACT. THE GROUND OF APPEAL RAISED BY THE ASSESSEE I S ALLOWED 6. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS ALL OWED. ORDER PRONOUNCED IN THE OPEN COURT ON THIS 26 TH DAY OF JUNE, 2012. SD/- SD/- (T.R.SOOD) (SUSHMA CHOWLA) ACCOUNTANT MEMBER JUDICIAL MEMBER DATED : 26 TH JUNE, 2012 *RATI* COPY TO: THE APPELLANT/THE RESPONDENT/THE CIT(A)/TH E CIT/THE DR. ASSISTANT REGISTRAR, ITAT, CHANDIGARH 4