M/s Expressions Outfits, Panchkula V. ITO (TDS), Panchkula

ITA 739/CHANDI/2012

• Counselvise Citation: 73921514 RSA 2012
• Duration Of Justice: 4 month(s) 15 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 26-11-2012
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Next Hearing Date: 08-11-2012
• Assessment Year: 2008-2009
• Appeal Filed On: 11-07-2012
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: AKHILESH GUPTA
• Assessee Lawyers: PARIKSHIT AGGARWAL
• Keywords: Reasonable cause
• Section: 139; 273B

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL CHANDIGARH BENCH A, CHANDIGARH BEFORE MS. SUSHMA CHOWLA, JUDICIAL MEMBER AND SHRI MEHAR SINGH, ACCOUNTANT MEMBER ITA NO. 739/CHD/2012 (ASSESSMENT YEAR : 2008-09) M/S EXPRESSIONS OUTFITS, VS. THE INCOME TAX OFFI CER(TDS), SCO NO.410, SECTOR 8, PANCHKULA. PANCHKULA. PAN: AAAFE3291R (APPELLANT) (RESPONDENT) APPELLANT BY : SHRI PARIKSHIT AGGARWAL RESPONDENT BY : SHRI AKHILESH GUPTA, DR DATE OF HEARING : 08.11.2012 DATE OF PRONOUNCEMENT : 26.11.2012 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), PANCHKULA DAT ED 9.5.2012 RELATING TO ASSESSMENT YEAR 2008-09 AGAINST THE PEN ALTY LEVIED U/S 272B OF THE INCOME TAX ACT, 1961 (IN SHORT THE ACT). 2. THE ASSESSEE HAS RAISED THE FOLLOWING GROUNDS OF APPEAL: 1. THE IMPUGNED ORDER IS AGAINST FACTS AND LAW. 2. THE LD. AO HAS ERRED IN LEVYING THE PENALTY OF RS.10,000/- U/S 272B OF THE INCOME TAX ACT. 3. THAT THE APPELLANT CRAVES LEAVE TO AMEND, ALTER OR ADD TO ABOVE GROUNDS OF APPEAL, BEFORE THE APPEAL IS HEARD AND DISPOSED OFF. 3. IN THE DEFECT MEMO ISSUED TO THE ASSESSEE, IT WA S POINTED OUT THAT THE PRESENT APPEAL WAS FILED AFTER A DELAY OF THREE DAYS. THE LEARNED A.R. FOR THE ASSESSEE POINTED OUT THAT BY AN ERROR IN THE ORIGINAL FORM 2 NO.36 FILED BEFORE THE TRIBUNAL, IN COLUMN NO.9 THE DATE OF COMMUNICATION OF ORDER APPEALED AGAINST WAS MENTION ED AS 9.5.2012, WHICH IS THE DATE OF THE ORDER OF CIT (APPEALS). T HE SAID ORDER WAS RECEIVED BY THE ASSESSEE ON 20.5.2012 AND THE NECES SARY CORRECTION WAS MADE IN THE REVISED FORM NO.36 FILED BY THE ASSESSE E BEFORE THE TRIBUNAL. IN VIEW THEREOF, WE PROCEED TO DISPOSE O FF THE PRESENT APPEAL AFTER HEARING BOTH THE AUTHORIZED REPRESENTATIVES. 4. THE ONLY ISSUE RAISED IN THE PRESENT APPEAL IS A GAINST LEVY OF PENALTY UNDER SECTION 272B OF THE ACT AMOUNTING TO RS.10,000/-. 5. THE BRIEF FACTS OF THE CASE ARE THAT THE ASSESSE E DURING THE YEAR UNDER CONSIDERATION HAD FILED THE E-TDS QUARTERLY S TATEMENT FOR THE FINANCIAL YEAR 2007-08 IN FORM NO. 26Q ON 21.7.2007 . THE ASSESSING OFFICER ON THE SCRUTINY OF THE SAID E-TDS RETURN NO TED THAT THE PAN NUMBERS OF TWELVE DEDUCTEES WERE FOUND TO BE INVALI D. 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/-. BEFORE THE CIT(A), THE CONTENTION OF THE LD. AR FOR THE ASSESSEE WAS THAT IT HAD FILED ITS QUART ERLY E-TDS RETURN AND DEPOSITED TAXES AND HAD REASONABLE CAUSE FOR NOT S UBMITTING THE REQUISITE DETAILS. THE CORRECTION STATEMENT WAS FI LED ON 23.3.2011. THE CIT(A) UPHELD THE LEVY OF PENALTY U/S 272B OF THE A CT. 6. 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 2007-08 ON 21.7.2007. IN THE SAID TDS 3 RETURN, IT HAS REFLECTED INFORMATION IN RESPECT OF DEDUCTEES. HOWEVER, PAN NUMBERS OF TWELVE DEDUCTEES FURNISHED BY THE AS SESSEE WERE FOUND TO BE INCORRECT. THE ASSESSEE FAILED TO FURNISH T HE 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 23.3.2011. IN THE ABOVE SAID FACT S 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 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 RAISED BY THE ASSESSEE IS ALLOWED. 7. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS ALL OWED. ORDER PRONOUNCED IN THE OPEN COURT ON 26 TH DAY OF NOVEMBER, 2012. SD/- SD/- (MEHAR SINGH) (SUSHMA CHOWLA) ACCOUNTANT MEMBER JUDICIAL MEMBER DATED : 26 TH NOVEMBER, 2012 *RATI* COPY TO: THE APPELLANT/THE RESPONDENT/THE CIT(A)/TH E CIT/THE DR. ASSISTANT REGISTRAR, ITAT, CHANDIGARH 4