ITO (TDS), Panchkula V. State Director Secondary Education, Chandigarh

ITA 777/CHANDI/2012

• Counselvise Citation: [2012] 140 COUNSELVISE.COM (IT) 64016 (ITAT-CHANDIGARH)
• Duration Of Justice: 3 month(s) 23 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 22-11-2012
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: B
• Next Hearing Date: 20-02-2013
• Assessment Year: 2009-2010
• Appeal Filed On: 30-07-2012
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: N K SAINI
• Section: 27

Judgement Text

1 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. 777/CHD/2012 (ASSESSMENT YEAR : 2009-10) THE INCOME TAX OFFICER (TDS), VS. STATE DIRECTOR S ECONDARY EDUCATION, AAYAKAR BHAWAN, SECTOR 2, 30, BAYS BUILDING, SEC TOR 17, PANCHKULA. CHANDIGARH. PAN: RTKS05852A (APPELLANT) (RESPONDENT) APPELLANT BY : NONE RESPONDENT BY : SHRI N.K.SAINI, DR DATE OF HEARING : 19.11.2012 DATE OF PRONOUNCEMENT : 22.11.2012 O R D E R PER SUSHMA CHOWLA, J.M, : THE APPEAL FILED BY THE REVENUE IS AGAINST THE ORDE R OF THE COMMISSIONER OF INCOME-TAX (APPEALS), PANCHKULA DAT ED 16.05.2012 RELATING TO ASSESSMENT YEAR 2009-10 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. ON THE FACTS AND CIRCUMSTANCES OF THE CASE, THE LD. COMMISSIONER OF INCOME TAX (APPEALS) HAS ERRED IN LAW IN GIVING RELIEF IN THE PENALTY LEVIED U/S 272 OF THE INCOME TAX ACT 1961 AMOUNTING TO RS.4,80,000/- FOR NON QUOTING/WRONG QUOTING OF PANS IN 49 CASES IN THE TDS RETURN 24Q FOR THE A.YS 2009-10. 2. THE LD. CIT (APPEALS) HAS ERRED IN LAW IN GIVING RELIEF TO THE ASSESSEE ON THE GROUND THAT IN VIEW OF THE FAILURE OF THE PAN APPELLANT TO COMPLY WITH THE PROVISIONS OF SUB CLAUSE (IV) CLAUSE (5B) OF SECTION 139A, THE APPELLANT IS LIABLE TO PENALTY OF RS.10,000/- U/S 272B(1) OF THE INCOME TAX ACT 1961. 2 3. THE PRESENT APPEAL IS FILED BY THE REVENUE AGAIN ST THE ORDER OF CIT (APPEALS) IN RESTRICTING THE PENALTY LEVIED UNDER S ECTION 272B OF THE ACT FROM RS.4,80,000/- TO RS.10,000/-. 4. THE BRIEF FACTS OF THE CASE ARE THAT THE ASSESSE E IN THE E-TDS QUARTERLY STATEMENT OF DEDUCTION OF TAX IN FORM NO. 24Q RELATING TO FINANCIAL YEAR 2008-09 FILED ON 16.5.2009 HAD DEFAU LTED IN QUOTING PAN NUMBERS OF 49 DEDUCTEES. THE PAN NUMBERS QUOTED BY THE ASSESSEE WERE FOUND TO BE INVALID AND NO CORRECTION STATEMENT WAS FILED BY THE ASSESSEE IN THIS REGARD. THE ASSESSING OFFICER HELD THE ASS ESSEE TO BE LIABLE TO PENALTY UNDER SECTION 272B OF THE ACT AND IMPOSED P ENALTY OF RS.4,90,000/-. THE CIT (APPEALS) RESTRICTED THE PE NALTY TO RS.10,000/- IN VIEW OF THE PROVISIONS OF SECTION 272B(1) OF THE ACT. 5. THE REVENUE IS IN APPEAL AGAINST THE SAID ORDER OF THE CIT (APPEALS). DESPITE VARIOUS NOTICE BEING ISSUED TO THE ASSESSEE NONE APPEARED ON BEHALF OF THE ASSESSEE ON EARLIER DATE OF HEARING AND EVEN ON THE APPOINTED DATE OF HEARING I.E. 19.11.2012. WE PROCEED TO DISPOSE OFF THE PRESENT APPEAL AFTER HEARING THE LEARNED D.R. F OR THE REVENUE. 6. THE ISSUE RAISED IN THE PRESENT APPEAL IS IN REL ATION TO LEVY OF PENALTY UNDER SECTION 272B OF THE ACT FOR THE DEFAU LT IN QUOTING OF PAN NUMBERS OF THE DEDUCTEES IN THE E-TDS QUARTERLY STA TEMENT FILED IN FORM NO.24Q BY THE ASSESSEE. THE ASSESSEE IN THE SAID F ORM NO.24Q RELATING TO FINANCIAL YEAR 2008-09 HAD WRONGLY QUOTED THE PA N NUMBERS IN RESPECT OF 49 DEDUCTEES. THE ASSESSEE HAD NOT FILE D THE CORRECTION STATEMENT BEFORE THE ASSESSING OFFICER OR BEFORE PA SSING OF THE ORDER OF THE CIT (APPEALS) ALSO. IN VIEW THEREOF THOUGH THE ASSESSING OFFICER LEVIED PENALTY OF RS.4,90,000/-, THE SAME WAS RESTR ICTED TO RS.10,000/- BY THE CIT (APPEALS). THE PROVISIONS OF SECTION 27 2B(1) OF THE ACT 3 PROVIDE THAT IF A PERSON FAILED TO COMPLY WITH THE PROVISION OF SECTION 139A, THE ASSESSING OFFICER MAY DIRECT THAT SUCH PE RSON SHALL PAY, BY WAY OF PENALTY A SUM OF RS.10,000/- . IN VIEW OF THE ABOVE SAID PROVISIONS OF THE ACT WE ARE IN AGREEMENT WITH THE ORDER OF THE CIT (APPEALS) IN RESTRICTING LEVY OF PENALTY UNDER SECT ION 272B OF THE ACT AT RS.10,000/-. THUS GROUNDS OF APPEAL RAISED BY THE REVENUE ARE DISMISSED. 7. IN THE RESULT, THE APPEAL OF THE REVENUE IS DISM ISSED. ORDER PRONOUNCED IN THE OPEN COURT ON 22 ND DAY OF NOVEMBER, 2012. SD/- SD/- (T.R.SOOD) (SUSHMA CHOWLA) ACCOUNTANT MEMBER JUDICIAL MEMBER DATED : 22 ND NOVEMBER, 2012 *RATI* COPY TO: THE APPELLANT/THE RESPONDENT/THE CIT(A)/TH E CIT/THE DR. ASSISTANT REGISTRAR, ITAT, CHANDIGARH