2009 (2) TMI 831 - AT - Income Tax

Summary

Issues involved: Penalty u/s 272B of the IT Act for non-quoting of Permanent Account Number (PAN) of deductees in TDS statements.

ITA No. 907(BNG.)/2008:
The case involved the penalty u/s 272B for not quoting PAN of deductees in TDS statements. The assessee argued non-availability of PAN as the reason for non-compliance. The AO imposed a penalty of Rs. 10,000 which was upheld by the CIT(A). The assessee contended that it cannot be penalized for something impossible to do. The Tribunal referred to a similar case where penalty was not imposed on the bank for customer's mistake in filling Form No. 60. Following the same reasoning, the penalty in this case was deleted.

ITA Nos. 908 and 909(B)/2008:
Similar issue of penalty for non-quoting of PAN in TDS statements arose in these appeals. Relying on the decision in ITA No. 907(B)/08, the Tribunal deleted the penalties imposed by the AO.

In conclusion, the appeals filed by the assessees were allowed, and the penalties u/s 272B were deleted based on the reasoning that there was no failure on the part of the assessee in complying with the provisions of the IT Act regarding PAN quoting in TDS statements.