Finance Department Zilha Parishad, Latur V. Joint Commissioner of Income-tax, Range - TDS Range, Nashik

ITA 586/PUN/2019

• Counselvise Citation: [2022] 106 COUNSELVISE.COM (IT) 3361 (ITAT-PUNE)
• Duration Of Justice: 3 year(s) 4 month(s) 9 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 24-08-2022
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: A
• Assessment Year: 2011-2012
• Appeal Filed On: 14-04-2019
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Keywords: Reasonable cause; TDS
• Section: 273B; 274; 272A

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL ‘A’ BENCH, PUNE BEFORE SHRI INTURI RAMA RAO, ACCOUNTANT MEMBER AND SHRI PARTHA SARATHI CHAUDHURY, JUDICIAL MEMBER ITA No. 586/PUN/2019 : A.Y. 2011-12 Finance Department Zilha Parishad, Latur. PAN: NSKF00236F Appellant Vs. The Jt. Commissioner of Income-tax TDS Range, Nashik Respondent Appellant by : None Respondent by : Shri Ramnath P. Murkunde Date of Hearing : 25-08-2022 Date of Pronouncement : 25-08-2022 ORDER PER PARTHA SARATHI CHAUDHURY, JUDICIAL MEMBER This appeal preferred by the assessee emanates from the order of the ld. Commissioner of Income Tax (Appeals) – 2, Aurangabad dated 30-08-2018 for the Assessment Year 2011-12 as per the grounds of appeal on record. 2. The solitary grievance of the assessee in this appeal is the imposition of penalty u/s 272A clause (2) sub-clause (k) r.w.s. 200 clause (3) of the Income- tax Act, 1961 (hereinafter referred to as “the Act”) imposed by the ld. A.O and as confirmed by the ld. CIT(A) for delay in submission of TDS statements of Rs. 76,200/-. 3. The brief facts in this regard are that during the assessment proceedings, it was noticed by the ld. A.O that the prescribed person responsible for deduction of tax under the provisions of Chapter XVIIB of the Act was required to prepare and deliver or caused to be delivered a Quarterly Statement u/s 200 clause (3) of the Act within such time and as per the form as 2 ITA No.586/PUN/2019 Finance Department Zilha Parishad A.Y. 2011-12 prescribed under Rule 31A of the Income-tax Rules 1962. The ld. A.O while issuing notice u/s 272A(2)(k) r.w.s. 274 brought to the notice of the assessee deductor that as per the provisions of Chapter XVIIB of the Act, the deductor was required to prepare and deliver or caused to be delivered a quarterly statement u/s 200 clause (3) within the prescribed time. It was also brought to the notice of the assessee deductor that as per the records of the Department, the following returns were found to be filed late pertaining to the financial year 2010-11. RRR No. Form No. Periodicity Due Date Date of filing Delay (days) 73450200011532 26Q Q1 14-Jul-10 31-Dec-10 169 73450200011543 26Q Q2 15-Oct-10 31-Dec-10 77 73450100011724 26Q Q3 15-Jan-11 29-Nov-11 318 73450100011735 26Q Q4 15-May-11 29-Nov-11 198 4. A notice was duly served on the assessee. However, there was no compliance of the said notice nor any explanation was put-forth by the assessee before the ld. A.O explaining the default. In these circumstances, the ld. A.O invoked the provisions of sec. 272A clause (2) sub-clause (k) of the Act r.w.s. 200 clause (3) and imposed the penalty for delay in delivering the TDS statements. 5. At the first appellate stage, none appeared for the assessee. However, written submissions were filed. In the said submissions, the assessee contended that the delay in filing TDS statements is only due to the delay in collecting PANs from all the deductees and further the main reasons are late receipt of grants/funds from the higher authorities and non-receipt of book identification number required for filing forms No. 24Q which led to further delay in filing the form No. 24Q statements. The assessee further submitted before 3 ITA No.586/PUN/2019 Finance Department Zilha Parishad A.Y. 2011-12 the ld. CIT(A) that as a Government Organization it has tremendous work-load or facing shortage of employees, etc. The ld. CIT(A) did not agree with the submissions made by the assessee that the delay was caused mainly due to non-availability of PANs of deductees. Since at the appellate stage the assessee failed to show what kind of efforts were made by the assessee in collecting PANs and there was no material on record to suggest any correspondence between the assessee and the deductees on this issue. That even the plea of shortage of employees remained unsubstantiated. The ld. CIT(A) therefore, held that the assessee was not able to substantiate and place on record any reasonable cause for condonation of such delay and therefore, the penalty u/s 272A clause (2) sub-clause (k) was confirmed. 6. Before us also, none appeared for the assessee nor any adjournment petition was filed. From the office records it is clear that the notice was served on the registered address given by the assessee. 7. We have perused the material on record and the orders of the subordinate authorities as well. We have heard the submissions of the ld. D.R in this case. Admittedly, there is a breach inviting penalty u/s 272A clause (2) sub-clause (k) of the Act and the assessee has accepted that there was a delay in furnishing TDS statements as required by the Act. Recourse to section 273B should have been resorted to if the assessee was able to substantiate reasonable cause for such delay. We have gone through the findings of the ld. CIT(A) and find that there is a meticulous examination of facts by him and none of the grounds taken by the assessee for explaining the default was substantiated before the ld. CIT(A). In such scenario, we do not find any reason to interfere with the 4 ITA No.586/PUN/2019 Finance Department Zilha Parishad A.Y. 2011-12 findings of the ld. CIT(A) which are hereby upheld. The grounds raised by the assessee are accordingly dismissed. 8. In the result, the appeal of the assessee is dismissed. Order pronounced in the open Court on this 25 th August 2022. Sd/- sd/- (INTURI RAMA RAO) (PARTHA SARATHI CHAUDHURY) ACCOUNTANT MEMBER JUDICIAL MEMBER Pune; Dated, the 25 th August , 2022 Ankam Copy of the Order forwarded to : 1. The Appellant. 2. The Respondent. 3. The CIT – (A)-2 Aurangabad . 4. CC.I.T. , Nashik 5. D.R. ITAT „A‟ Bench 5. Guard File BY ORDER, /// TRUE COPY /// Sr. Private Secretary ITAT, Pune. 5 ITA No.586/PUN/2019 Finance Department Zilha Parishad A.Y. 2011-12 1 Draft dictated on 25-08-2022 Sr.PS/PS 2 Draft placed before author 25-08-2022 Sr.PS/PS 3 Draft proposed and placed before the second Member JM/AM 4 Draft discussed/approved by second Member AM/JM 5 Approved draft comes to the Sr. PS/PS Sr.PS/PS 6 Kept for pronouncement on 25-08-2022 Sr.PS/PS 7 Date of uploading of order 25-08-2022 Sr.PS/PS 8 File sent to Bench Clerk 25-08-2022 Sr.PS/PS 9 Date on which the file goes to the Head Clerk 10 Date on which file goes to the A.R 11 Date of dispatch of order