ORIENTAL BANK OF COMMERCE, MUMBAI V. ADDL CIT (TTDS) RG 1, MUMBAI

ITA 7219/MUM/2014

• Counselvise Citation: [2016] 121 COUNSELVISE.COM (IT) 3599 (ITAT-MUMBAI)
• Duration Of Justice: 1 year(s) 7 month(s) 1 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 05-07-2016
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: C
• Assessment Year: 2010-2011
• Appeal Filed On: 04-12-2014
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: RADHA KEETYAL NARANG
• Keywords: Reasonable cause

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL C BENCH, MUMBAI BEFORE SHRI MAHAVIR SINGH , JM AND SHRI SANJAY ARORA, AM ./ I.T.A. NO. 7219/MUM/2014 ( / ASSESSMENT YEAR: 2010 - 11 ) ORI ENTAL BANK OF COMMERCE 483, AMAN CHAMBERS, VEER SAWARKAR MARG, PRABHADEVI, MUMBAI - 400 025 / VS. ADDL. CIT (TDS), RANGE - 1, MUMBAI ./ ./ PAN/GIR NO. AAACO 0191 M ( / APPELLANT ) : ( / RESPONDENT ) / APPELLANT BY : NONE / RESPONDENT BY : MS. RADHA KEETYAL NARANG / DATE OF HEARING : 05.7.2016 / DATE OF PRONOUNCEMENT : 05 .7.2016 / O R D E R PER MAHAVIR SINGH, JM : THIS IS AN A PP EAL BY THE ASSESSEE ARISING OUT OF THE ORDER BY THE COMMISSIONER OF INCOME TAX (APPEALS) - 14 , MUMBAI (CIT(A) FOR SHORT) DATED 03.9.2014 IN APPEAL NO.CIT(A) - 14/TDS - 1/IT - 29/2012 - 13 , FOR THE ASSESSMENT YEAR (A.Y.) 2010 - 11. THE PENALTY UNDER DISPUTE WAS LEVIE D BY THE ADDL. CIT(TDS), MUMBAI VIDE ORDER DATED 28.12.2011 U/S. 272A(2)(K) OF THE INCOME TAX ACT, 1961 (THE ACT HEREINAFTER). NONE APPEARED FOR AND ON BEHALF OF THE ASSESSEE - APPELLANT WHEN THE APPEAL WAS CALLED OUT FOR HEARING, NOR IS THERE ANY ADJOURNM ENT APPLICATION FILED ON RECORD. 2 ITA NO. 7219/MUM/2014 (A.Y. 2010 - 11) ORIENTAL BANK OF COMMERCE VS. ADDL . CIT (TDS) 2 . THE ONLY ISSUE IN THIS APPEAL OF THE ASSESSEE IS AGAINST THE ORDER OF THE CIT(A ), CONFIRMING THE LEVY OF PENALTY U/S. 272A(2)(K) OF THE ACT FOR DEFAULT IN FURNISHING THE QUARTERLY TAX DEDUCTED AT SOURCE ( TDS ) RETURNS. 3. WE HAVE HEARD THE LD. DEPARTMENTAL REPRESENTATIVE (DR) BEFORE US. IT IS NOT IN DISPUTE THAT THE ASSESSEE DEDUCTED THE TDS AT THE EARLIEST POINT OF TIME . H OWEVER, THERE IS A DELAY IN FILING OF THE QUARTERLY RETURNS , THE DETAILS OF WHICH ARE AS UNDER: QT R. NO. OF DAYS DELAY TDS AMOUNT PENALTY RS.100/ - PER DAY OF DELAYS (DAYS X 100) PENALTY AMOUNT RESTRICTED TO 26Q - 1ST 427 435501 42700 42700 26Q - 2ND 335 379701 33500 33500 26Q - 3RD 243 353454 24300 24300 26Q - 4TH 92 402704 9200 9200 AMOUNT LEVIED 1,09,7 00 4. ACCORDING TO THE ASSESSEE, THE DELAY OCCURRED DUE TO THE COMPLIANCE GUIDELINES AS FRAMED BY NSDL MANDATORY QUOTING OF 85% DEDUCTEES CORRECT PAN NUMBERS, ETC., WHICH WERE NEWLY INTRODUCED AT THAT TIME. HE FURTHER SUBMITS THAT THE DELAY IN F ILING THE RETURN CAN BE CONSIDERED AS A TECHNICAL OR VENIAL BREACH OF LAW FOR WHICH PENALTY MAY NOT BE LEVIED. FURTHER, ACCORDING TO THE A.O. THE ASSESSEE HAD PROMPTLY DEPOSITED TAX IN THE GOVERNMENT ACCOUNT WITHIN THE STIPULATED TIME AS A LAW ABID ING ASSE SSEE AND THE DELAY IS NOT INTENTIONAL BUT ONLY DUE TO THE ABOVE EXPLANATION. IT IS AN ADMITTED FACT THAT THE TDS WAS DEDUCTED AND THE AMOUNT WAS DEPOSITED IN THE GOVERNMENT ACCOUNT WELL WITHIN THE TIME. THOUGH THERE IS A DELAY IN SUBMITTING THE RETURN, TH E REASONS GIVEN THERETO APPEARS TO BE VERY COGENT AND REASONABLE. FURTHER, EVEN OTHERWISE DUE TO SUCH DELAY IN FILING THE RETURN, NO PREJUDICE IS CAUSED TO THE REVENUE , NOR DOES THE ASSESSEE STAND TO GAIN , AND DEFAULT CANNOT BE ATTRIBUTED AS INTENTIONAL TO SUCH DELAY. 5. UNDER THE SE CIRCUMSTANCES, FOR THESE REASONS , WE FIND THAT THE REASONS EXPLAINED BY THE ASSESSEE CONSTITUTE A REASONABLE CAUSE AND CONSEQUENTLY FIND THAT THE ORDERS OF THE 3 ITA NO. 7219/MUM/2014 (A.Y. 2010 - 11) ORIENTAL BANK OF COMMERCE VS. ADDL . CIT (TDS) AUTHORITIES BELOW CANNOT BE SUSTAINED UNDER LAW , AND ARE LIABLE TO B E SET ASIDE . WE, THEREFORE, RECORD A FINDING ACCORDINGLY AND ALLOW THE APPEAL OF THE ASSESSEE. 6. IN THE RESULT, THE ASSESSEES APPEAL IS ALLOWED . ORDER PRONOUNCED IN THE OPEN COURT ON JULY 5 TH , 20 1 6 SD/ - SD/ - (SANJAY ARORA ) (MAHAVIR SINGH) / ACCOUNTANT MEMBER / JUDICIAL MEMBER MUMBAI ; DATED : 05 . 0 7 .201 6 . . ./ ROSHANI , SR. PS / COPY OF THE ORDER FORWARDED TO : 1. / THE APPELLANT 2. / THE RESPONDENT 3. ( ) / THE CIT(A) 4. / CIT - CONCERNED 5. , , / DR, ITAT, MUMBAI 6. / GUARD F ILE / BY ORDER, / (DY./ASSTT. REGISTRAR) , / ITAT, MUMBAI