Indian Bank, Ambala Cantt. V. ITO (TDS), Panchkula

ITA 523/CHANDI/2012

• Counselvise Citation: [2012] 140 COUNSELVISE.COM (IT) 60922 (ITAT-CHANDIGARH)
• Duration Of Justice: 1 month(s) 28 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 06-07-2012
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Assessment Year: 2008-2009
• Appeal Filed On: 09-05-2012
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: JAI SHREE SHARMA
• Assessee Lawyers: H K JINDAL
• Keywords: Reasonable cause
• Section: 273B

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.523 /CHD/2012 (ASSESSMENT YEAR: 2008-09) INDIAN BANK, VS. THE INCOME TAX OFFICER(TDS), PREET NAGAR PANCHKULA. AMBALA CANTT. PAN: RTKI00625C (APPELLANT) (RESPONDENT) APPELLANT BY : SHRI. H.K. JINDAL RESPONDENT BY : SMT. JAISHREE SHARMA, DR DATE OF HEARING : 05.07.2012 DATE OF PRONOUNCEMENT : 06.07.2012 O R D E R PER SUSHMA CHOWLA, J.M. : THIS APPEAL BY THE ASSESSEE IS AGAINST THE ORDER O F THE COMMISSIONER OF INCOME TAX (APPEALS), ROHTAK DATED 16.03.2012 RELATING TO ASSESSMENT YEAR 2008-09 AGAINST THE PEN ALTY LEVIED U/S 272B OF INCOME TAX ACT, 1961. 2. THE GROUND OF APPEAL RAISED BY THE ASSESSEE IS A S UNDER: THE LD. COMMISSIONER OF INCOME TAX (APPEAL) HAS ER RED IN LAW AND FACTS OF THE CASE WHILE UPHOLDING THE PENAL TY OF RS.20000/- INSTEAD OF GIVING RELIEF AGAINST THE SAM E. 3. 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 2007-08 IN FORM NO. 24Q ON 30.04.200 8. THE ASSESSING OFFICER ON THE SCRUTINY OF THE SAID E-TDS RETURN NO TED THAT THE PAN NUMBERS OF THREE DEDUCTEES WERE FOUND TO BE INVALID /MISSING. THE ASSESSING OFFICER ISSUED SHOW CAUSE NOTICE TO THE A SSESSEE. HOWEVER, AS NO RESPONSE WAS RECEIVED FROM THE ASSESSEE, THE PEN ALTY U/S 272B OF THE 2 ACT WAS LEVIED AT RS. 20,000/-. BEFORE THE CIT(A), THE CONTENTION OF THE LD. AR FOR THE ASSESSEE WAS THAT IT HAD FILED ITS Q UARTERLY TDS RETURN AND DEPOSITED TAXES AND HAD REASONABLE CAUSE FOR N OT SUBMITTING THE REQUISITE DETAILS. THE CORRECTION STATEMENT WAS FI LED ON 25.01.2010, WHICH WAS BEFORE THE LAST DATE OF HEARING. THE CIT (A) UPHELD THE LEVY OF PENALTY U/S 272B OF THE ACT. 4. ON PERUSAL OF THE RECORD, WE FIND THAT THE ISSUE RAISED IN THE PRESENT APPEAL IS AGAINST LEVY OF PENALTY UNDER SEC TION 272B OF THE ACT. PENALTY U/S 272B OF THE ACT IS LEVIABLE IN ALL SUCH CASES WHERE THE ASSESSEE HAS FAILED TO COMPLY WITH THE PROVISIONS O F SECTION 139A(2) OF THE ACT. IN THE FACTS OF THE PRESENT CASE, THE ASS ESSEE HAD E-FILED ITS QUARTERLY TDS RETURN FOR THE FINANCIAL YEAR 2007-08 ON 30.04.2008. IN THE SAID TDS RETURN, IT HAD REFLECTED INFORMATION I N RESPECT OF DEDUCTEES. HOWEVER, PAN NUMBERS OF THREE DEDUCTEE FURNISHED BY THE ASSESSEE WERE FOUND TO BE INCORRECT. THE ASSESSEE FAILED TO FURNI SH THE REQUISITE INFORMATION BEFORE THE ASSESSING OFFICER. HOWEVER, CORRECT PAN NUMBERS WERE LATER AVAILABLE WITH THE ASSESSEE AND THE ASSESSEE HAD FILED REVISED COMPUTATION ON 25.01.2012. IN THE ABOVE SAI D 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 HAD ESTABLISHED THAT THERE WAS REASONABLE CAUSE FOR THE FAILURE REFERRED TO IN THE RESPECTIVE SECTI ONS LEVYING PENALTY 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 HAD 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 3 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. 4. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS ALL OWED ORDER PRONOUNCED IN THE OPEN COURT ON THIS DAY OF 6 TH JULY, 2012. SD/- SD/- (T.R.SOOD) (SUSHMA CHOWLA) ACCOUNTANT MEMBER JUDICIAL MEMBER DATED 6 TH JULY, 2012 *RATI* COPY TO: THE APPELLANT/THE RESPONDENT/THE CIT(A)/TH E CIT/THE DR. ASSISTANT REGISTRAR, ITAT, CHANDIGARH