Principal, Ambala V. ITO (TDS), Panchkula

ITA 469/CHANDI/2012

• Counselvise Citation: [2012] 140 COUNSELVISE.COM (IT) 63975 (ITAT-CHANDIGARH)
• Duration Of Justice: 4 month(s) 29 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 26-09-2012
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Next Hearing Date: 13-09-2012
• Assessment Year: 2009-2010
• Appeal Filed On: 27-04-2012
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: ASHOK KHANNA
• Keywords: Reasonable cause
• Section: 273B; 139

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. 469/CHD/2012 (ASSESSMENT YEAR : 2009-10) THE PRINCIPAL, VS. THE INCOME TAX OFFICER(TDS), GOVT. COLLEGE, NARAINGARH, PANCHKULA. AMBALA. PAN: RTKG05119C (APPELLANT) (RESPONDENT) APPELLANT BY : NONE RESPONDENT BY : SHRI ASHOK KHANNA, DR DATE OF HEARING : 13.09.2012 DATE OF PRONOUNCEMENT : 26.09.2012 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. DESPITE SERVICE OF NOTICE NONE APPEARED ON BEHAL F OF THE ASSESSEE. WE PROCEED TO DISPOSE OFF THE APPEAL BECAUSE OF THE SIMPLICITER ISSUE RAISED IN THE PRESENT APPEAL. 3. THE ONLY ISSUE RAISED IN THE PRESENT APPEAL VID E GROUND NO.1 READS AS UNDER: 1. ON THE FACTS AND THE CIRCUMSTANCES OF THE CASE THE LD. INCOME TAX OFFICER (TDS) HAS ERRED IN LAW AND FACTS IN IMPOSING THE PENALTY OF RS.40,000 FOR DEFAULT U/S 139A(5B) OF THE INCOME TAX ACT 1961. 2 3. THE ONLY ISSUE RAISED IN THE PRESENT IS AGAINST PENALTY LEVIED UNDER SECTION 272B OF THE ACT AMOUNTING TO RS.40,000/-. 4. THE BRIEF FACTS OF THE CASE ARE THAT THE ASSESSE E DURING THE YEAR UNDER CONSIDERATION HAD FILED THE TDS QUARTERLY STA TEMENT FOR THE FINANCIAL YEAR 2008-09 IN FORM NO. 24Q ON 11.6.2009 . THE ASSESSING OFFICER ON THE SCRUTINY OF THE SAID E-TDS RETURN NO TED THAT THE PAN NUMBERS OF FOUR DEDUCTEES WERE FOUND TO BE INVALID. THE ASSESSING 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.40,000/-. 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 WAS FI LED ON 19.10.2010. THE CIT(A) UPHELD THE LEVY OF PENALTY U/S 272B OF T HE ACT. 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 11.6.2009. IN THE SAID TDS RETURN, IT HAS REFLECTED INFORMATION IN RESPECT OF DEDUCTEES. HOWEVER, PAN NUMBERS OF FOUR DEDUCTEES FURNISHED BY THE ASSE SSEE 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 19.10.2010. IN THE ABOVE SAID FAC TS 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. FURTHER, UNDER THE PROVISIONS OF SECTION 3 273B OF THE ACT, PENALTY IS NOT TO BE IMPOSED IN CA SES WHERE THE ASSESSEE HAS ESTABLISHED THAT THERE WAS REASONABLE CAUSE FOR THE FAILURE REFERRED TO IN THE RESPECTIVE SECTIONS LEVYING PENA LTY UNDER THE ACT. IN THE TOTALITY OF FACTS AND CIRCUMSTANCES OF THE CASE , THE ASSESSEE HAD A BONAFIDE CAUSE FOR NOT FILING THE ABOVE SAID INFORM ATION BEFORE THE ASSESSING OFFICER WHICH THOUGH WAS AVAILABLE WITH T HE ASSESSEE AND THE REVISED COMPUTATION HAS ALSO BEEN FILED BY THE ASSE SSEE UNDER WHICH COMPLETE INFORMATION OF PAN NUMBERS OF DEDUCTEES HA VE BEEN FURNISHED. ACCORDINGLY, WE HOLD THAT THE CLAIM OF THE ASSESSEE WAS BONAFIDE AND THERE WAS A REASONABLE CAUSE FOR NOT COMPLYING WITH THE PROVISIONS OF THE ACT IN TIME. THE ASSESSEE UNDER THESE CIRCUMST ANCES IS NOT EXIGIBLE TO LEVY OF PENALTY U/S 272B OF THE ACT AND ACCORDIN GLY WE DIRECT THE ASSESSING OFFICER TO DELETE THE PENALTY LEVIED U/S 272B OF THE ACT. THE GROUND OF APPEAL NO.1 RAISED BY THE ASSESSEE IS ALL OWED. 5. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS ALL OWED. ORDER PRONOUNCED IN THE OPEN COURT ON 26 TH DAY OF SEPTEMBER, 2012. SD/- SD/- (T.R.SOOD) (SUSHMA CHOWLA) ACCOUNTANT MEMBER JUDICIAL MEMBER DATED : 26 TH SEPTEMBER, 2012 *RATI* COPY TO: THE APPELLANT/THE RESPONDENT/THE CIT(A)/TH E CIT/THE DR. ASSISTANT REGISTRAR, ITAT, CHANDIGARH 4