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. 659/CHD/2012 (ASSESSMENT YEAR : 2008-09) MEHTAB SINGH RAGHUNANDAN LAL, VS. THE INCOME TAX OFFICER(TDS), NEAR CENTRAL BANK OF INDIA, PANCHKULA. JAGADHARI. PAN: AAJFM2921R (APPELLANT) (RESPONDENT) APPELLANT BY : SHRI TEJ MOHAN SINGH RESPONDENT BY : SHRI AKHILESH GUPTA, DR DATE OF HEARING : 25.09.2012 DATE OF PRONOUNCEMENT : 28.09.2012 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), KARNAL DATED 22.03.2012 RELATING TO ASSESSMENT YEAR 2008-09 AGAINST PENALTY LEVIED U NDER SECTION 272B OF THE INCOME TAX ACT, 1961 (IN SHORT THE ACT). 2. THE ASSESSEE HAS RAISED THE FOLLOWING GROUNDS OF APPEAL: 1. THAT THE ORDER OF COMMISSIONER OF INCOME TAX (APPEALS) IS WRONG ON FACTS AS WELL AS ON LAW IN DISMISSING THE APPEALS BY INTERPRETING THE PROVISIONS OF SUB-SECTION 5B OF SECTION 139(A) OF THE INCOME TAX ACT. 2. THAT THE CIT (APPEALS) HAS VIOLATED THE PRINCIPL E OF NATURAL JUSTICE WHILE DISMISSING THE APPEAL AS EVERY ASPECT OF THE CASE SHOULD BE TAKEN INTO CONSIDERATION SO THAT NOTHING SHOULD GO AGAINST THE ASSESSEE. 3. THE ISSUE RAISED IN THE PRESENT APPEAL IS AGAINS T PENALTY LEVIED UNDER SECTION 272B OF THE ACT AMOUNTING TO RS.10,00 0/-. 2 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. 26Q ON 12.6.2009 . THE ASSESSING OFFICER ON THE SCRUTINY OF THE SAID E-TDS RETURN NO TED THAT THE PAN NUMBER OF THREE 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.10,000/- VIDE ORDER DATED 10.3.201 1. BEFORE THE CIT(A), THE CONTENTION OF THE LD. AR FOR THE ASSESS EE WAS THAT IT HAD FILED ITS QUARTERLY TDS RETURN AND DEPOSITED TAXES AND HAD REASONABLE CAUSE FOR NOT SUBMITTING THE REQUISITE DETAILS. TH E CORRECTION STATEMENT WAS FILED ON 01.12.2010. THE CIT(A) UPHELD THE LEV Y OF PENALTY U/S 272B OF THE 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 12.6.2009. IN THE SAID TDS RETURN, IT HAS REFLECTED INFORMATION IN RESPECT OF EIGHT DEDUCTEES. HOWEVER, PAN NUMBERS OF THREE DEDUCTEES FURNISHED B Y THE ASSESSEE WERE FOUND TO BE INCORRECT. HOWEVER, CORRECT PAN NUMBER WAS LATER AVAILABLE WITH THE ASSESSEE AND THE ASSESSEE HAD FI LED REVISED COMPUTATION ON 01.12.2010. 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 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 3 REFERRED TO IN THE RESPECTIVE SECTIONS LEVYING PENA LTY UNDER THE ACT. IN THE TOTALITY OF FACTS AND CIRCUMSTANCES OF THE CASE WHERE THE ASSESSEE HAD FURNISHED REVISED COMPUTATION UNDER WHICH COMPLETE INFORMATION OF PAN NUMBERS OF DEDUCTEES HAD BEEN FURNISHED, THERE WAS BANAFIDE CAUSE. 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 28 TH DAY OF SEPTEMBER, 2012. SD/- SD/- (T.R.SOOD) (SUSHMA CHOWLA) ACCOUNTANT MEMBER JUDICIAL MEMBER DATED : 28 TH SEPTEMBER, 2012 *RATI* COPY TO: THE APPELLANT/THE RESPONDENT/THE CIT(A)/TH E CIT/THE DR. ASSISTANT REGISTRAR, ITAT, CHANDIGARH 4