2011 (12) TMI 581 - AT - Income Tax

Summary

Issues involved: Appeal against reduction of penalty u/s 272B of Income-tax Act, 1961 for non/quoting of PANs in TDS returns.

Summary:
1. The Department appealed against the reduction of penalty u/s 272B by the ld. CIT(A) for non/quoting of PANs in TDS returns for AY 2006-07.
2. The AO levied a penalty of &8377; 3,70,000 for non/quoting of PANs in 37 cases in the TDS return for financial year 2005-06.
3. The ld. CIT(A) reduced the penalty citing non-compliance with section 139A and directed a penalty of &8377; 10,000 per default u/s 272B(1).
4. The Department contended that the penalty of &8377; 10,000 per default was correctly levied by the AO.
5. The Tribunal confirmed the ld. CIT(A)'s order, stating that Section 272B does not provide for penalty per default, upholding the reduction of penalty.
6. The appeal by the Department was dismissed, and the order was pronounced on 5.12.2011.