2019 (8) TMI 1865 - AT - Income Tax

Penalty u/s 272A(2)(k) r.w.s. 200(3) - assessee filed the TDS return late for all the quarters with the meaningful delay of 163 days only - HELD THAT - As perusing the calculating sheet furnished by the assessee before us and also the decision of the Tribunal of Nav Maharashtra Vidyalaya and others 2017 (1) TMI 722 - ITAT PUNE , we find it is relevant to remand the issue to the file of the CIT(A) to consider the ratio laid down in the decision of the Tribunal in the case of Nav Maharashtra Vidyalaya and others (supra). The event of remitting to Government proceeds the event of filing of eTDS statements. Considering the above, we find the CIT(A) may grant opportunity to the assessee for explanation and justification of the delay of 163 days. Accordingly, we remit back all the issues to the file of the CIT(A) for fresh adjudication. It is hereby directed that the CIT(A) shall pass a speaking order after granting reasonable opportunity of being heard to the assessee - Appeal of the assessee is allowed for statistical purposes.

Summary

Issues:
Penalty under section 272A(2)(k) for late filing of TDS return.

Analysis:
The appeal was filed by the assessee against the order of CIT(A)-1, Aurangabad for the Assessment Year 2011-12, challenging the penalty imposed under section 272A(2)(k) for late filing of TDS return. The assessee contended that the penalty was unjustified as there was a delay of only 163 days in filing the return. The counsel for the assessee argued that the penalty levied by the Assessing Officer was excessive and should be reduced to Rs.16,300 based on the actual delay. The counsel also cited a decision of the Tribunal in a similar case to support the argument. On the other hand, the Revenue relied on the order of the revenue authorities to uphold the penalty.

Upon hearing both parties and examining the submissions, the Tribunal found merit in the assessee's arguments. Referring to a specific paragraph from a previous Tribunal decision, the Tribunal decided to remand the issue back to the CIT(A) for reconsideration. The Tribunal emphasized that the penalty should be restricted from the date of payment of TDS to the date of filing e-TDS statements, as e-TDS statements cannot be filed without payment of TDS to the Central Government. The Tribunal directed the CIT(A) to grant the assessee an opportunity to explain the delay of 163 days and to pass a speaking order after due consideration. Consequently, the grounds raised by the assessee were allowed for statistical purposes, and the appeal was allowed in favor of the assessee.

In conclusion, the Tribunal's decision focused on the appropriate calculation of the penalty under section 272A(2)(k) for late filing of TDS return, emphasizing the need to consider the actual delay and the sequence of events related to TDS payment and filing of e-TDS statements. The case was remanded back to the CIT(A) for a fresh adjudication, with directions to pass a reasoned order after granting the assessee a fair opportunity to present their case.