The Branch Manager, Yamunanagar V. ITO (TDS), Panchkula

ITA 852/CHANDI/2012

• Counselvise Citation: [2012] 140 COUNSELVISE.COM (IT) 64005 (ITAT-CHANDIGARH)
• Duration Of Justice: 2 month(s) 17 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 31-10-2012
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Assessment Year: 2009-2010
• Appeal Filed On: 14-08-2012
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Reasonable cause
• Section: 273B; 139

Judgement Text

1 IN THE INCOME TAX APPELLATE TRIBUNAL CHANDIGARH BENCH A, CHANDIGARH BEFORE SHRI T.R.SOOD, ACCOUNTANT MEMBER AND MS. SUSHMA CHOWLA, JUDICIAL MEMBER ITA NOS. 848 TO 852/CHD/2012 (ASSESSMENT YEARS : 2006-07, 2008-09 & 2009-10) THE BRANCH MANAGER VS. THE INCOME TAX OFFICER(T DS), NATIONAL INSURANCE COMPANY LTD. PANCHKULA. NEW FONTAINN CHOWK, YAMUNANAGAR. PAN: AAACN9967E (APPELLANT) (RESPONDENT) APPELLANT BY : NONE RESPONDENT BY : SHRI AKHILESH GUPTA, DR DATE OF HEARING : 29.10.2012 DATE OF PRONOUNCEMENT : 31.10.2012 O R D E R PER SUSHMA CHOWLA, J.M, : THIS BUNCH OF FIVE APPEALS ARE FILED BY THE SAME AS SESSEE AGAINST THE SEPARATE ORDERS OF THE COMMISSIONER OF INCOME-T AX (APPEALS), KARNAL, ALL DATED 30.05.2012 RELATING TO ASSESSMENT YEARS 2006-07, 2008- 09 AND 2009-10 AGAINST THE PENALTY LEVIED UNDER SEC TION 272B OF THE INCOME TAX ACT, 1961 (IN SHORT THE ACT). 2. THOUGH NOTICE OF HEARING WAS ISSUED TO THE ASSES SEE BUT NON WAS PRESENT ON BEHALF OF THE ASSESSEE NOR ANY APPLICATI ON WAS MOVED FOR ADJOURNMENT. IN VIEW OF THE ISSUE INVOLVED BEING C OVERED BY THE EARLIER ORDERS OF THE TRIBUNAL, WE PROCEED TO DISPOSE OFF T HE BUNCH OF APPEALS AFTER HEARING THE LEARNED D.R. FOR THE REVENUE. 3. SINCE COMMON ISSUES ARE INVOLVED IN ALL THE APPE ALS, THE PRESENT BUNCH OF APPEALS IS BEING DECIDED BY THIS CONSOLIDA TED ORDER FOR THE SAKE OF CONVENIENCE. 2 4. THE COMMON ISSUE RAISED IN ALL THE APPEALS IS AG AINST THE LEVY OF PENALTY UNDER SECTION 272B OF THE ACT. 5. THE BRIEF FACTS OF THE CASE ARE THAT THE ASSESSE E WAS FOUND TO HAVE DEFAULTED IN FURNISHING PAN NUMBERS IN THE RESPECTI VE E-TDS QUARTERLY RETURNS FILED BY IT FOR DIFFERENT FINANCIAL YEARS AS DETAILED UNDER: --------------------------------------------------- -------------------------------------------- FINANCIAL YEAR E-TDS RETURN E-TDS RETURN NO. OF D EDUCTEES PENALTY FILED ON (PAN NOT FILED) LEVIED --------------------------------------------------- --------------------------------------- 2005-06 FORM NO.26Q 30.8.2005 109 RS.10,000/- 2007-08 FORM NO.24Q 16.6.2008 3 RS.10,000/- 2007-08 FORM NO.26Q 16.6.2008 10 RS.10,000/- 2008-09 FORM NO.26Q 24.7.2008 8 RS.10,000/- 2008-09 FORM NO.26Q 10.11.2008 8 RS.10,00 0/- 6. THE ASSESSING OFFICER HELD THE ASSESSEE TO BE IN DEFAULT IN NOT FURNISHING CORRECT PAN NUMBERS OF VARIOUS DEDUCTEES IN THE E-TDS RETURNS FILED QUARTERLY IN THE RESPECTIVE ASSESSMEN T YEARS AND HELD THE ASSESSEE TO BE LIABLE TO LEVY OF PENALTY UNDER SECT ION 272B OF THE ACT. THE ASSESSING OFFICER THUS LEVIED PENALTY UNDER SEC TION 272B OF THE ACT AS UNDER: ASSESSMENT YEAR PENALTY LEVIED 2006-07 RS.10,000/- 2008-09 RS.10,000/- 2008-09 RS.10,000/- 2009-10 RS.10,000/- 200910 RS.10,000/- 7. THE CIT (APPEALS) UPHELD THE LEVY OF PENALTY AS THE ASSESSEE HAD NOT FURNISHED THE CORRECTION STATEMENT BEFORE THE A SSESSING OFFICER I.E. BEFORE COMPLETION OF THE PENALTY PROCEEDINGS IN THE RESPECTIVE YEARS. THE ASSESSEE IS IN APPEAL AGAINST THE AFORESAID LEV Y OF PENALTY UNDER SECTION 272B OF THE ACT. 8. WE FIND THAT SIMILAR ISSUE OF LEVY OF PENALTY UN DER SECTION 272B OF 3 THE ACT AROSE BEFORE THE TRIBUNAL IN THE CASE OF CH IEF EXECUTIVE OFFICER, CANNTONMENT BOARD, AMBALA CANTT. VS. THE INCOME TAX OFFICER(TDS), PANCHKULA IN ITA NO. 470/CHD/2012 AND VIDE ORDER DA TED 26.9.2012 IT WAS HELD AS UNDER: 4. ON PERUSAL OF THE RECORD, WE FIND THAT THE ISS UE RAISED THE PRESENT APPEAL IS AGAINST LEVY OF PENALT Y UNDER SECTION 272B OF THE ACT. PENALTY U/S 272B OF THE ACT IS LEVIABLE IN ALL SUCH CASES WHERE THE ASSESSE E 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-FILED ITS QUARTERLY TDS RETURN FOR T HE FINANCIAL YEAR 2008-09 ON 4.6.2009. IN THE SAID TD S RETURN, IT HAS REFLECTED INFORMATION IN RESPECT OF DEDUCTEES. HOWEVER, PAN NUMBERS OF ELEVEN DEDUCTEES FURNISHED BY THE ASSESSEE WERE FOUND TO BE INCORREC T. THE ASSESSEE FAILED TO FURNISH THE REQUISITE INFORM ATION BEFORE THE ASSESSING OFFICER. HOWEVER, CORRECT PAN NUMBERS WERE LATER AVAILABLE WITH THE ASSESSEE AND THE ASSESSEE HAD FILED REVISED COMPUTATION ON 25.10.20 10. IN THE ABOVE SAID FACTS AND CIRCUMSTANCES OF THE CA SE, WE ARE OF THE VIEW, THAT THE ASSESSEE IS NOT EXIGIB LE TO LEVY OF PENALTY U/S 272B OF THE ACT. FURTHER, UNDE R THE PROVISIONS OF SECTION 273B OF THE ACT, PENALTY IS N OT TO BE IMPOSED IN CASES WHERE THE ASSESSEE HAS ESTABLIS HED THAT THERE WAS REASONABLE CAUSE FOR THE FAILURE REF ERRED TO IN THE RESPECTIVE SECTIONS LEVYING PENALTY UNDER THE ACT. IN THE TOTALITY OF FACTS AND CIRCUMSTANCES OF THE CASE, THE ASSESSEE HAD A BONAFIDE CAUSE FOR NOT FIL ING THE ABOVE SAID INFORMATION BEFORE THE ASSESSING OFF ICER WHICH THOUGH WAS AVAILABLE WITH THE ASSESSEE AND TH E REVISED COMPUTATION HAS ALSO BEEN FILED BY THE ASSE SSEE UNDER WHICH COMPLETE INFORMATION OF PAN NUMBERS OF DEDUCTEES HAVE BEEN FURNISHED. ACCORDINGLY, WE HOLD THAT THE CLAIM OF THE ASSESSEE WAS BONAFIDE AND THE RE WAS A REASONABLE CAUSE FOR NOT COMPLYING WITH THE PROVISIONS OF THE ACT IN TIME. THE ASSESSEE UNDER THESE CIRCUMSTANCES IS NOT EXIGIBLE TO LEVY OF PENALTY U/ S 272B OF THE ACT AND ACCORDINGLY WE DIRECT THE ASSES SING OFFICER TO DELETE THE PENALTY LEVIED U/S 272B OF TH E ACT. THE GROUND OF APPEAL NO.1 RAISED BY THE ASSESSEE IS ALLOWED. 9. IN THE FACTS OF THE PRESENT CASE AND FROM THE PE RUSAL OF THE ORDER/S OF CIT (APPEALS) WE FIND THAT THE ASSESSEE HAD FURN ISHED THE CORRECTION STATEMENT, WHICH HAD BEEN REFERRED TO BY THE CIT (A PPEALS) IN THE RESPECTIVE PARAS AS UNDER: 4 --------------------------------------------------- ------------------- FINANCIAL YEAR REFERENCE CORRECTION STATEMENT BY CIT (APPEALS) FILED ON --------------------------------------------------- -------------------- 2005-06 PARA 1.08/PAGE 4 26.3.2012 2007-08 PARA 1.06/PAGE 3 19.9.2011 2007-08 PARA 1.08/PAGE 4 26.3.2012 2008-09 PARA 1.07/PAGE 4 26.3.2012 2008-09 PARA 1.08/PAGE 4 06.1.2011/17.3.2011 10. THE FACTS OF THE PRESENT CASE ARE IDENTICAL TO THE FACTS IN ITA NO.470/CHD/2012 AND FOLLOWING THE RATIO LAID DOWN B Y THE TRIBUNAL VIDE ORDER DATED 26.9.2012 WE HOLD THAT WHERE THE ASSESS EE HAD FURNISHED CORRECTION STATEMENT IN RESPECT OF THE DEDUCTEES WH OSE PAN NUMBERS WERE FOUND TO BE INCORRECT BY THE ASSESSING OFFICER , THOUGH BELATEDLY, HAD REASONABLE CAUSE IN NOT FURNISHING THE SAME IN THE E-TDS QUARTERLY RETURNS. CONSEQUENTLY, WE FIND NO MERIT IN THE LEV Y OF PENALTY UNDER SECTION 272B OF THE ACT. HOWEVER, IN RESPECT OF IT A NO.852/CHD/2012, THE OBSERVATIONS OF THE CIT (APPEALS) IN PARA 1.08 AT PAGE 4 OF THE APPELLATE ORDER ARE THAT THE ASSESSEE THOUGH CLAIMS TO HAVE FURNISHED THE CORRECTION STATEMENT ON 6.1.2011/17.3.2011 BUT HAD FAILED TO FURNISH ANY EVIDENCE BEFORE THE CIT (APPEALS) OR THE ASSESSING OFFICER IN THIS REGARD. ACCORDINGLY, WE DIRECT THE ASSESSING OFFIC ER TO VERIFY THE STAND OF THE ASSESSEE IN THIS REGARD AND IN CASE THE CORR ECTION STATEMENT HAS BEEN SO FILED BY THE ASSESSEE NO PENALTY IS LEVIABL E UNDER SECTION 272B OF THE ACT. HOWEVER, IN CASE THE ASSESSEE HAS FAIL ED TO FURNISH THE CORRECTION STATEMENT IN THE SAID CASE, THE ASSESSEE IS LIABLE TO LEVY OF PENALTY UNDER SECTION 272B OF THE ACT TOTALING RS.1 0,000/-. THUS THE APPEALS OF THE ASSESSEE IN ITA NOS.848 TO 851/CHD/2 012 ARE ALLOWED AND APPEAL IN ITA NO.852/CHD/2012 IS ALLOWED FOR STATIS TICAL PURPOSES. 11. IN THE RESULT, THE APPEALS OF THE ASSESSEE IN I TA NOS.848 TO 851/CHD/2012 ARE ALLOWED AND APPEAL IN ITA NO.852/C HD/2012 IS 5 ALLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE OPEN COURT ON 31 ST DAY OF OCTOBER, 2012. SD/- SD/- (T.R.SOOD) (SUSHMA CHOWLA) ACCOUNTANT MEMBER JUDICIAL MEMBER DATED : 31 ST OCTOBER, 2012 *RATI* COPY TO: THE APPELLANT/THE RESPONDENT/THE CIT(A)/TH E CIT/THE DR. ASSISTANT REGISTRAR, ITAT, CHANDIGARH