Profile India, Ambala City V. ITO (TDS), Panchkula

ITA 466/CHANDI/2012

• Counselvise Citation: [2014] 140 COUNSELVISE.COM (IT) 80913 (ITAT-CHANDIGARH)
• Duration Of Justice: 2 year(s) 5 month(s) 3 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 30-09-2014
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Next Hearing Date: 29-09-2014
• Assessment Year: 2008-2009
• Appeal Filed On: 27-04-2012
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: J S NAGAR
• Section: 6; 139

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL CHANDIGARH BENCH B, CHANDIGARH BEFORE SHRI BHAVNESH SAINI, JUDICIAL MEMBER AND SHRI T.R.SOOD, ACCOUNTANT MEMBER ITA NO. 466/CHD/2012 ASSESSMENT YEAR : 2008-09 PROFILE INDIA, VS. THE INCOME TAX OFFICER(TDS), 224, MODEL TOWN, PANCHKULA. AMBALA CITY. PAN: RTKM03438B (APPELLANT) (RESPONDENT) APPELLANT BY : NONE RESPONDENT BY : SHRI J.S.NAGAR, DR DATE OF HEARING : 29.09.2014 DATE OF PRONOUNCEMENT : 30.09.2014 O R D E R PER BHAVNESH SAINI, J.M. : THIS APPEAL FILED BY THE ASSESSEE IS DIRECTED AGAI NST THE ORDER OF THE LEARNED CIT (APPEALS), PANCHKULA DATED 29.2.2012 FOR ASSESSMENT YEAR 2008-09, CHALLENGING THE LEVY O F PENALTY UNDER SECTION 272B OF THE INCOME TAX ACT, 1961. 2. BRIEFLY, THE FACTS OF THE CASE ARE THE ITO(TDS) WHILE GOING THROUGH THE QUARTERLY RETURN ON FORM NO.26Q FILED B Y THE ASSESSEE NOTED THAT IT HAS OMITTED TO QUOTE PAN/HAS QUOTED INVALID PAN IN 6 CASES IN 1 ST QUARTER AND 20 CASES IN 3 RD QUARTER. AS PER THE ASSESSING OFFICER, THE ASSESS EE WAS 2 GIVEN OPPORTUNITIES TO EXPLAIN ITS POSITION AND FIL E THE CORRECT DETAILS IN THIS REGARD. HOWEVER, THE ASSESSEE DID NOT FILE ANY REPLY. THEREFORE, THE ASSESSEE WAS FOUND TO HAVE COMMITTED DEFAULT UNDER SECTION 139A(5B) FOR WHICH PENALTY UN DER SECTION 272B OF THE ACT WAS LEVIABLE. THE ASSESSI NG OFFICER, THEREFORE, LEVIED PENALTY AT RS.60,000/- AND RS.2 L ACS @ RS.10,000/- PER DEFAULT VIDE ORDER DATED 28.9.2010. THE LEARNED CIT (APPEALS) NOTED THAT THE ASSESSEE HAS N OT FILED C- 5 CORRECTION CERTIFICATE AT THE APPELLATE PROCEEDIN GS. THE LEARNED CIT (APPEALS) FOUND THAT THE DEFAULT IS ONL Y WITH REGARD TO WRONG QUOTING OF PAN. THE PENALTY IS LE VIABLE FOR THE DEFAULT COMMITTED UNDER SECTION 139A OF THE ACT . IN THE INSTANT CASE THE PENALTY HAS BEEN LEVIED FOR DEFAUL T UNDER SECTION 139A(5B)(IV) OF THE ACT, AS PER WHICH A PER SON WHO IS RESPONSIBLE FOR DEDUCTING TAX UNDER CHAPTER XVII-B SHALL QUOTE THE PAN OF THE PERSON TO WHOM SUCH INCOME/SUM HAS BEEN PAID IN ALL THE STATEMENTS PREPARED AND DELIVE RED IN ACCORDANCE WITH PROVISION OF SECTION 200(3) TO INCO ME TAX AUTHORITY. THE ASSESSEE QUOTED INVALID PAN OF 6 F OR 1 ST QUARTER AND 20 FOR 3 RD QUARTER OF THE DEDUCTEES. THE LEARNED CIT (APPEALS), THEREFORE, FOUND THAT THE AS SESSEE HAS FAILED TO COMPLY WITH THE PROVISIONS OF SECTION 139 A OF THE ACT. THEREFORE, IN VIEW OF THE FAILURE OF THE PAN ASSESSEE TO COMPLY WITH THE PROVISIONS OF SUB-CLAUSE (IV) CLAUS E (5B) OF SECTION 139A OF THE ACT, THE ASSESSEE IS LIABLE TO PENALTY OF 3 RS.10,000/- UNDER SECTION 272B(1) OF THE INCOME TAX ACT. THE PENALTY OF RS.10,000/- WAS LEVIED EACH FOR 1 ST AND 3 RD QUARTER. AS A RESULT THE ASSESSEE WAS GRANTED REL IEF OF RS.50,000/- FOR 1 ST QUARTER AND RS.1,90,000/- FOR 3 RD QUARTER AND APPEAL OF THE ASSESSEE WAS PARTLY ALLOWED. 3. NONE APPEARED ON BEHALF OF THE ASSESSEE. THE A SSESSEE CHALLENGED CONFIRMING LEVY OF PENALTY AT RS.10,000/ - FOR 3 RD AND 1 ST QUARTER IN THE PRESENT APPEAL. THE ASSESSEE IN T HE WRITTEN SUBMISSIONS STATED THAT THE ASSESSEE HAS CORRECTED ALL THE INVALID PAN IN THE TDS STATEMENT AND CORRECTED STAT EMENT WAS FILED BEFORE THE LEARNED CIT (APPEALS). THE COPIE S OF THE TDS CERTIFICATE ARE FILED ALONGWITH THE WRITTEN SUBMISS IONS, WHICH BEAR DATED 20.9.2010. IT, THEREFORE, APPEARS THAT THE SAID CERTIFICATE WAS AVAILABLE WITH THE ASSESSEE BEFORE THE DECISION OF THE LEARNED CIT (APPEALS). THEREFORE, IT WOULD BE APPROPRIATE TO RESTORE THIS MATTER TO THE FILE OF T HE CIT (APPEALS) WITH THE DIRECTIONS TO RE-DECIDE THIS GRO UND OF THE ASSESSEE BY VERIFYING THE CORRECT STATEMENT FILED B Y THE ASSESSEE BEFORE THE TRIBUNAL. WE ACCORDINGLY SET ASIDE THE ORDER OF THE LEARNED CIT (APPEALS) AND RESTORE THE MATTER TO HIS FILE WITH THE DIRECTION TO VERIFY THE FACT OF C ORRECTION FROM THE CORRECTED STATEMENT NOW FILED BEFORE THE TRIBUN AL AND DECIDE THE ISSUE IN ACCORDANCE WITH LAW. THE LEA RNED CIT (APPEALS) SHALL GIVEN REASONABLE SUFFICIENT OPPORTU NITIES OF BEING HEARD TO THE ASSESSEE. 4 4. IN THE RESULT, THE APPEAL FILED BY THE ASSESSEE IS ALLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE OPEN COURT ON THIS 30 TH DAY OF SEPTEMBER, 2014. SD/- SD/- (T.R.SOOD) (BHAVNESH SAINI) ACCOUNTANT MEMBER JUDICIAL MEMBER DATED : 30 TH SEPTEMBER, 2014 *RATI* COPY TO: THE APPELLANT/THE RESPONDENT/THE CIT(A)/TH E CIT/THE DR. ASSISTANT REGISTRAR, ITAT, CHANDIGARH