Udaygiri Lions Association, Latur V. Joint Commissioner of Income-tax,TDS Range, Nashik

ITA 841/PUN/2018

• Counselvise Citation: [2021] 108 COUNSELVISE.COM (IT) 1045 (ITAT-PUNE)
• Duration Of Justice: 3 year(s) 1 month(s) 29 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 09-07-2021
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Assessment Year: 2011-2012
• Appeal Filed On: 10-05-2018
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Charitable institution; TDS

Judgement Text

] IN THE INCOME TAX APPELLATE TRIBUNAL PUNE BENCH PUNE (THROUGH VIRTUAL COURT) BEFORE SHRI INTURI RAMA RAO, AM AND SHRI S. S. VISWANETHRA RAVI, JM ITA NO.841/PUN/2018 / ASSESSMENT YEAR : 2011-12 UDAYAGIRI LIONS ASSOCIATION, 01, SHIVAJI COLONY, C/O. RAMPRASAD NARSINGRAO LAKHOTIA, UDGIR, LATUR. PAN : NSKU00445E. . / APPELLANT V/S THE JOINT COMMISSIONER OF INCOME TAX, TDS RANGE, NASHIK. . / RESPONDENT ASSESSEE BY : SHRI BHARAT SHAH. REVENUE BY : SHRI SUDHENDU DAS. / DATE OF HEARING : 08.07.2021 / DATE OF PRONOUNCEMENT : 09.07.2021 / ORDER PER INTURI RAMA RAO, AM: THIS IS AN APPEAL FILED BY THE ASSESSEE DIRECTED AGAINST T HE ORDER OF LEARNED COMMISSIONER OF INCOME TAX (APPEALS) 1, AURANGABA D DATED 01.03.2018 FOR THE ASSESSMENT YEAR 2011-12. 2 2. THE BRIEF FACTS OF THE CASE ARE AS UNDER : THE APPELLANT IS A CHARITABLE TRUST PROVIDING MEDICAL SERVICE S TO THE POOR. IN PURSUIT OF ITS CHARITABLE ACTIVITIES, THE APPELLANT SOCIETY HAS ENGAGED THE DOCTORS BY PAYING THE PROFESSIONAL CHARGES, WHICH ARE SUBJECT TO THE PROVISIONS OF TDS. THE APPELLANT SOCIETY THOUGH DE DUCTED TDS ON PAYMENTS MADE TO THE DOCTORS AND CREDITED THE SAME IN CENTRAL GOVERNMENT ACCOUNT. HOWEVER, THE TDS RETURNS COULD NO T BE FILED BY THE APPELLANT SOCIETY WITHIN STIPULATED DUE DATE. THE DELAY IN S UBMISSION OF THE TDS RETURNS U/S 200 (3) OF THE I.T. ACT IS AS UNDER : RRR NO. FORM NO. PERIODICITY DUE DATE DATE OF FILING DELAY DAYS 24060200006905 26Q Q1 15-JUL-10 31-MAR-12 625 24060200006916 26Q Q2 15-OCT-10 31-MAR-12 533 24060200013894 26Q Q3 15-JAN-10 11-JUN-12 513 24060200013916 26Q Q4 15-MAY-10 11-JUN-12 393 ON NOTICING THE DELAY, THE TDS OFFICER ISSUED A SHOW CAUSE NOTICE U/S 272A(2)(K) R.W.S. 200(3) OF THE ACT., IN RESPONSE TO WHICH NO REPLY WAS FILED BEFORE THE TDS OFFICER. ACCORDINGLY, THE TDS OFFICER HAD PROCEEDED WITH LEVY OF PENALTY U/S 272A(2)(K) R.W.S. 200(3) OF THE ACT BY LEVYING PENALTY OF RS1,47,579/- BY ORDER DATED 05.06.2013. 3. BEING AGGRIEVED BY THE LEVY OF PENALTY, ASSESSEE PRE FERRED APPEAL BEFORE THE LD.CIT(A) CONTENDING THAT THE DELAY IN SUBMISSION OF THE TDS RETURNS HAD OCCURRED ON ACCOUNT OF MANY REASONS WHIC H ARE BEYOND THE CONTROL OF THE APPELLANT I.E., THE DIFFICULTY FACED IN UPLOADING THE TDS RETURNS AND ALSO DUE TO FREQUENT CHANGES IN THE VERSION OF E-TDS SOFTWARE 3 DURING THE PERIOD FROM SEPTEMBER 2009 TO OCTOBER 2012 ON ACCOUNT OF UP-GRADATION ETC. THE APPELLANT FURTHER CONTENDED THAT THE DELAY IS NEITHER DELIBERATE NOR PREJUDICE IS CAUSED TO THE REVEN UE AND IT IS A MERE BREACH OF PROCEDURE OF LAW AND THEREFORE, NO PENALTY SHOU LD BE LEVIED BY PLACING RELIANCE ON THE DECISION OF HONBLE SUPREME COURT IN THE CASE OF HINDUSTAN STEEL LIMITED VS. STATE OF ORISSA REPORTED IN 83 ITR 26. 4. HOWEVER, THE LD.CIT(A) HAD CONFIRMED THE LEVY OF PENALTY D ISBELIEVING THE EXPLANATION OF THE APPELLANT THAT THE APPELLANT DOES NOT HAVE ANY TECHNICAL STAFF TO UPLOAD THE E-TDS RETURNS. 5. BEING AGGRIEVED BY THE ORDER OF LEVY OF PENALTY, THE AP PELLANT IS IN APPEAL BEFORE US BY REITERATING THE SAME EXPLANATION FILED B EFORE LD.CIT(A). THE LD.A.R. ALSO RELIED ON THE ORDER OF THE CO-ORDINATE BE NCH OF THE TRIBUNAL IN THE CASE OF MAHARASHTRA JEEVAN PRADHIKARAN WORKS DIVISION VS. JCIT, NASHIK IN ITA NO.2410/PUN/2017 DATED 17.05.2021. 6. ON THE OTHER HAND, LD.D.R. OPPOSED THE SUBMISSIONS OF TH E APPELLANT AND SUBMITTED THAT THE ORDER OF PENALTY SHOULD BE UPHELD AS THERE IS UNDUE DELAY AND THE DELAY IS ALSO NOT PROPERLY EXPLAINED AND CONTENDED THAT THE DECISION OF CO-ORDINATE BENCH OF TH E TRIBUNAL IN THE CASE OF MAHARASHTRA JEEVAN PRADHIKARAN WORKS DIVISION VS. JCIT , NASHIK RELIED BY THE LD.A.R. IS NOT APPLICABLE TO THE PRESENT FACTS OF THE CASE AS THERE IS DELAY IN DEDUCTING THE TDS AS WELL AS IN REMITTING THE SAME TO THE CREDIT OF CENTRAL GOVERNMENT ACCOUNT IN THE PRESENT CASE. 7. WE HAVE HEARD THE RIVAL SUBMISSIONS AND PERUSED THE M ATERIAL ON RECORD. THE ISSUE IN THE PRESENT APPEAL RELATES TO THE LE VY OF PENALTY U/S 272A(2)(K) R.W.S. 200(3) OF THE ACT. THE PROVISIONS OF SEC.272A(2 )(K) 4 PROVIDES THAT FOR LEVY OF PENALTY IN CASE OF THE DELAY IN SU BMITTING OF QUARTERLY RETURNS AS PRESCRIBED U/S 200(3) OF THE ACT. THE PROVISIONS OF SEC.200(3) OF THE ACT PROVIDES THAT NO PENALTY CAN BE LEVIE D IN CASE THE APPELLANT IS PREVENTED FROM FILING THE TDS RETURNS WITHIN THE DUE DATE BY SUFFICIENT CAUSE. THEREFORE, THE QUESTION THAT REQUIRES TO BE DETERMINED IS WHETHER OR NOT THE EXPLANATION OF THE APPELLANT THAT THE DELAY OCCURRED IS ON ACCOUNT OF IGNORANCE OF TECHNICAL KNOWLEDGE / DIFFICULTIES FA CED TO UPLOAD THE PRESCRIBED RETURNS CONSTITUTES REASONABLE CA USE FOR DELAY. EVEN OTHERWISE IT IS AN ADMITTED FACT THAT THE APPELLANT SOCIETY HAD DEDUCTED THE TDS, ALSO REMITTED TO THE CREDIT OF CENTRAL GOVERNMENT WITH INTEREST. NON-SUBMISSION OF PRESCRIBED QUARTERLY RETURNS WITHIN THE DUE DATE IS A MERE TECHNICAL BREACH OF PROCEDURAL LAW AND N O PREJUDICE IS CAUSED TO THE REVENUE AND THE RATIO OF THE DECISION OF H ONBLE SUPREME COURT IN THE CASE OF HINDUSTAN STEELS LIMITED (SUPRA) IS SQ UARELY APPLICABLE TO THE FACTS OF THE PRESENT CASE. ACCORDINGLY, WE DIRECT THE ASSESSING OFFICER TO DELETE THE PENALTY OF RS.1,47,579/- LEVIE D U/S 272A(2)(K) R.W.S. 200(3) OF THE ACT. THUS, THE APPEAL OF THE AS SESSEE IS ALLOWED. 8. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS ALLOWED. ORDER PRONOUNCED ON 9 TH DAY OF JULY, 2021. SD/- SD/- (S. S. VISWANETHRA RAVI) (IN TURI RAMA RAO) / JUDICIAL MEMBER / ACCOUNTANT MEMBER / PUNE; / DATED : 9 TH JULY, 2021. YAMINI 5 / COPY OF THE ORDER FORWARDED TO : 1. / THE APPELLANT. 2. / THE RESPONDENT. 3. THE CIT(A)-1, AURANGABAD. 4. THE CIT, TDS, PUNE. 5. , , , / DR, ITAT, B BENCH, PUNE. 6. / GUARD FILE. / BY ORDER, // TRUE COPY // SENIOR PRIVATE SECRETARY , / ITAT, PUNE.