English Indian Clays Ltd., Yamunanagar V. ITO (TDS), Panchkula

ITA 863/CHANDI/2013

• Counselvise Citation: [2014] 140 COUNSELVISE.COM (IT) 80818 (ITAT-CHANDIGARH)
• Duration Of Justice: 11 month(s) 13 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 05-08-2014
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: A
• Next Hearing Date: 15-07-2014
• Assessment Year: 2008-2009
• Appeal Filed On: 23-08-2013
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: J S NAGAR
• Assessee Lawyers: B M MONGA

Judgement Text

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.861 TO 863/CHD/2013 ASSESSMENT YEAR : 2008-09 ENGLISH INDIAN CLAYS LTD., VS. THE INCOME TAX OF FICER(TDS), C/O BHARAT STARCH INDUSTRIES, PANCHKULA. RADOUR ROAD, YAMUNANAGAR. PAN: AAACE5011C (APPELLANT) (RESPONDENT) APPELLANT BY : S/SHRI B.M.MONGA & ROHIT KAURA RESPONDENT BY : SHRI J.S.NAGAR, DR DATE OF HEARING : 15.07.2014 DATE OF PRONOUNCEMENT : 05.08.2014 O R D E R PER SUSHMA CHOWLA, J.M. : THESE THREE APPEALS FILED BY THE ASSESSEE ARE AGAI NST THE CONSOLIDATED ORDER OF THE COMMISSIONER OF INCOME TA X(APPEALS), KARNAL DATED 17.4.2013 AGAINST THE PENALTY LEVIED UNDER SE CTION 272B OF INCOME TAX ACT, 1961 (IN SHORT THE ACT). 2. THE ASSESSEE HAS RAISED FOLLOWING COMMON GROUNDS OF APPEAL IN ALL THE APPEALS: 1. THE LEARNED COMMISSIONER OF INCOME TAX(APPEALS) ERRED IN LAW AS WELL AS ON FACTS WHILE CONFIRMING THE ORD ER PASSED BY LD. INCOME TAX OFFICER(TDS) U/S 272B OF INCOME TAX IMPOSING PENALTY OF RS.10000/-FOR Q.4(Q. 1 IN ITA NO.862/CHANDI/2013) OF A.Y.2008-09. 2. THAT LEARNED COMMISSIONER OF INCOME TAX(APPEALS) PASSED COMBINED ORDER FOR APPEAL FOR Q-1, Q3, & Q4 OF THE ASSESSMENT YEAR 2008-09 AND CONFIRMED LEVY OF PENALTY OF RS.30000/- I.E. RS.10000/- PER QUARTER. 2 3. ALL THE THREE APPEALS RELATING TO THE SAME ASSES SEE WERE HEARD TOGETHER AND ARE BEING DISPOSED OFF BY THIS CONSOLI DATED ORDER FOR THE SAKE OF CONVENIENCE. 4. THE ONLY ISSUE RAISED IN ALL THE THREE APPEALS I S RELATING TO PENALTY UNDER SECTION 272B OF THE ACT. 5. THE BRIEF FACTS OF THE CASE ARE THAT THE ASSESSE E HAD FURNISHED E-TDS QUARTERLY STATEMENT OF DEDUCTION OF TAX IN FO RM NO.26Q FOR QUARTER NOS.1,3 AND 4 RELATING TO FINANCIAL YEAR 20 07-08 ON 14.7.2007, 15.1.2008 AND 16.6.2008 RESPECTIVELY. FOR QUARTER NO.1 OUT OF 327 TAX DEDUCTEES, PAN NUMBERS OF 38 TA X DEDUCTEES WERE FOUND TO BE INVALID/MISSING. FOR QUARTER NO. 3 OUT OF 445 TAX DEDUCTEES PAN NUMBERS OF 17 TAX DEDUCTEES AND FOR Q UARTER NO.4 OUT OF 643 TAX DEDUCTEES, PAN NUMBERS OF 31 TAX DED UCTEES WERE FOUND MISSING/INVALID. THE ASSESSEE HAD FAILED TO FILE CORRECTION STATEMENT BEFORE THE ASSESSING OFFICER. IN VIEW T HEREOF, THE ASSESSING OFFICER HELD THE ASSESSEE TO BE IN DEFAUL T AND LEVIED PENALTY UNDER SECTION 272B OF THE ACT AT RS.10,000/ - FOR EACH OF THE QUARTERS. 6. BEFORE THE CIT (APPEALS) THE PLEA OF THE ASSESSE E WAS THAT IT HAD FILED CORRECTION STATEMENT. HOWEVER, THE CIT (APPEALS) VIDE PARA 4.13 HAD GIVEN A FINDING THAT ALL THE CORRECTI ON STATEMENTS FILED BY THE ASSESSEE FOR EACH OF THE QUARTERS WERE INCOMPLETE AND THERE WAS STILL DEFAULT IN FURNISHING OF THE PAN NU MBERS OF THE DEDUCTEES. THE CIT (APPEALS), THEREFORE, UPHELD T HE LEVY OF PENALTY UNDER SECTION 272B OF THE ACT IN VIEW OF TH E RATIO LAID DOWN BY CHANDIGARH BENCH OF THE TRIBUNAL IN THE BRA NCH MANAGER, 3 ORIENTAL BANK OF COMMERCE VS. ITO(TDS), PANCHKULA I N ITA NOS.853 TO 855/CHD/2012 ORDER DATED 28.2.2013. 7. THE LEARNED A.R. FOR THE ASSESSEE BEFORE US POIN TED OUT THAT IT HAD FURNISHED CORRECTION STATEMENT AND AFTER THE SAID CORRECTION STATEMENT THERE IS NO DEFAULT IN RESPECT OF QUARTER NO.1, QUARTER NO.4 FOR FINANCIAL YEAR 2007-08. AS PER THE INFOR MATION RECEIVED FROM THE WEBSITE OF THE ASSESSEE, HOWEVER THE CORRE CTION STATEMENT OF QUARTER NO.3 FOR FINANCIAL YEAR 2007-08 HAS NOT BEEN CORRECTED FULLY. 8. THE LEARNED D.R. FOR THE REVENUE POINTED OUT THA T DESPITE SEVERAL OPPORTUNITIES PROVIDED TO THE ASSESSEE, THE CORRECTION STATEMENT HAD NOT BEEN FILED TILL THE PASSING OF TH E ORDER OF THE CIT (APPEALS) AND HENCE, THERE IS NO MERIT IN THE P LEA OF THE ASSESSEE. 9. WE HAVE HEARD THE RIVAL CONTENTIONS AND PERUSED THE RECORD. THE ISSUE ARISING IN THE PRESENT APPEAL IS IN RELAT ION TO LEVY OF PENALTY UNDER SECTION 272B OF THE ACT. THE ASSESS EE HAD FURNISHED E-TDS QUARTERLY STATEMENT RELATING TO ASS ESSMENT YEAR 2007-08 AND IN THE SAID STATEMENT FOR QUARTER NO.1, QUARTER NO.3 AND QUARTER NO.4, THE ASSESSING OFFICER NOTED THAT THERE WAS DEFAULT IN QUOTING OF THE PAN NUMBERS. THE ASSESS EE HAD FAILED TO FURNISH THE CORRECT PAN NUMBERS OF DEDUCTEES TOT ALING 38 IN QUARTER NO.1, 17 TAX DEDUCTEES IN QUARTER NO.3 AND 31 TAX DEDUCTEES IN QUARTER NO.4 THE ASSESSEE CLAIMED TH AT IT HAD CORRECTED ALL THE PAN NUMBERS OF THE TAX DEDUCTEES RELATING TO QUARTER NOS.1 AND 4 FOR FINANCIAL YEAR 2007-08, THO UGH THE CORRECTED PAN NUMBERS OF ALL THE TAX DEDUCTEES IN Q UARTER NO.3 4 HAVE NOT BEEN FILED. IN VIEW OF ASSESSEE HAVING B EEN NOT FURNISHED THE CORRECTED PAN NUMBERS RELATING TO QUA RTER NO.3 FOR FINANCIAL YEAR 2007-08, WE UPHOLD THE LEVY OF PENAL TY UNDER SECTION 272B OF THE ACT IN VIEW OF THE DEFAULT OF T HE ASSESSEE. WE PLACE RELIANCE ON THE RATIO LAID DOWN BY THE TRIBUN AL IN THE BRANCH MANAGER, ORIENTAL BANK OF COMMERCE VS. ITO(T DS), PANCHKULA IN ITA NOS.853 TO 855/CHD/2012(SUPRA). 10. NOW COMING TO THE CORRECTION STATEMENT FILED FO R QUARTER NO.1 AND 4 FOR FINANCIAL YEAR 2007-08, WE FIND THAT THE ASSESSEE HAD FURNISHED MANY CORRECTION STATEMENTS FOR EACH OF TH E QUARTERS AND THE CIT (APPEALS) HAD GIVEN THE FINDING THAT THE AS SESSEE HAD FAILED TO CORRECT ALL THE PAN NUMBERS WHICH WERE FO UND IN DEFAULT. HOWEVER, THE ASSESSEE BEFORE US HAD FURNISHED ON RE CORD THE STATEMENT TAKEN FROM THE WEBSITE OF THE GOVERNMENT OF INDIA STATING THAT ALL THE PAN NUMBERS HAVE BEEN CORRECTE D AND THERE IS NO DEFAULT IN RESPECT OF THE PAN NUMBERS RELATING T O QUARTER NO.1, 4 FOR FINANCIAL YEAR 2007-08. WE ARE OF THE VIEW THAT IN CASE THE ASSESSEE HAD FURNISHED CORRECT PAN NUMBERS OF ALL T HE TAX DEDUCTEES, THEN THE ASSESSEE IS NOT LIABLE TO LEVY OF PENALTY UNDER SECTION 272B OF THE ACT BUT IN CASE THE ASSESSEE HA D FAILED TO CORRECT THE PAN NUMBERS OF EVEN ONE DEDUCTEE, THEN THE ASSESSEE IS EXIGIBLE TO LEVY OF PENALTY UNDER SECTION 272B OF THE ACT. THE CLAIM OF THE ASSESSEE HAS NOT BEEN VERIFIED BY THE AUTHORITIES BELOW AND IN ALL FAIRNESS, WE DIRECT THE ASSESSING OFFICER TO VERIFY THE CLAIM OF THE ASSESSEE VIS--VIS THE CORRECTION STATEMENT FILED. IF THE SAME IS FOUND TO BE CORRECT, THEN NO PENALTY IS LEVIABLE UNDER SECTION 272B OF THE ACT FOR QUARTER NOS.1& 4 OF FINANCIAL YEAR 2007-08. IN CASE THE ASSESSEE HAD DEFAULTED IN CORRECTING 5 ANY ONE PAN NUMBER OF ANY OF THE TAX DEDUCTEES THEN THE ASSESSEE IS LIABLE TO LEVY OF PENALTY UNDER SECTION 272B OF THE ACT AT RS.10,000/- FOR EACH OF THE QUARTERS. THE ASSESSI NG OFFICER SHALL AFFORD REASONABLE OPPORTUNITY OF HEARING TO THE ASS ESSEE AND DECIDE THE ISSUE IN LINE WITH OUR DIRECTIONS. THE GROUND OF APPEAL RAISED BY THE ASSESSEE ARE THUS ALLOWED FOR STATIST ICAL PURPOSES. 11. IN THE RESULT, THE APPEALS OF THE ASSESSEE IN I TA NOS.861 & 862/CHD/2013 ARE ALLOWED FOR STATISTICAL PURPOSES A ND THE APPEAL IN ITA NO.863/CHD/2013 IS DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON THIS 5 TH DAY OF AUGUST, 2014. SD/- SD/- (T.R.SOOD) (SUSHMA CHOWLA) ACCOUNTANT MEMBER JUDICIAL MEMBER DATED : 5 TH AUGUST, 2014 *RATI* COPY TO: THE APPELLANT/THE RESPONDENT/THE CIT(A)/TH E CIT/THE DR. ASSISTANT REGISTRAR, ITAT, CHANDIGARH 6