1996 (3) TMI 147 - AT - Income Tax

Summary

Issues: Reduction of penalty u/s 272A(2)(c) for late filing of Form No. 26A under section 206.

Summary:
The appeals were against the CIT(A)'s reduction of penalties u/s 272A(2)(c) for late filing of Form No. 26A. The assessee deducted tax at source and deposited it on time, but filed Form No. 26A late. The penalty levied by the Assessing Officer and sustained by the CIT(A) was reduced in all cases. The counsel argued that the provisions at the relevant time did not mandate submission of particulars within the prescribed time. The amended provisions effective from 27-9-1991 were not applicable to assessment year 1989-90. The penalties were deemed unjustified due to technical breaches and the delay in filing was reasonable. The ITAT held that penalties deserved to be cancelled as the delay did not cause revenue loss and the assessee did not benefit from it. Citing the Hindustan Steel Ltd. case, the ITAT emphasized that penalties should not be imposed for technical breaches or bona fide beliefs. The decision was supported by a previous Tribunal case. Consequently, the ITAT directed the Assessing Officer to cancel the penalties in all cases, and all appeals were allowed.