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TMI Blog2004 (3) TMI 396X X X X Extracts X X X X X X X X Extracts X X X X ..... ed to appreciate the fact that it is obligatory on the part of the assessee to strictly adhere to the specific dates prescribed in the Act before which a certificate of tax deducted has to be issued to the concerned persons. 3. On the facts and in the circumstances of the case and in law, CIT(A) erred in inducing the concept of reasonable cause for cancellation of penalty when the said provisions are mandatory in nature. 4. The order of the CIT(A) be vacated and that of the AO be restored. 5. The appellant craves to add, alter, amend or modify any of the grounds of appeal at the time of hearing". 2. It was noticed by the Addl. CIT that there was a cumulative delay of 5835 days in issue of 104 TDS certificates. It was further noticed ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 1962. The Dy. CIT (AO) submitted a report on 16th Feb., 1996, stating that the salary certificates claimed to have been issued in old forms were in the form sheets issued by the tax deductor which were not in the form as prescribed by the Department. It was also stated that proper form was introduced and made effective from 28th Feb., 1991, and the assessee had enough time to issue the certificates in the new form by 30th April, 1991. It was also stated by the AO that no evidence was produced in respect of the salary certificates issued to the employees in new form in June, 1991. 3.1 The assessee was confronted with the contents of the report of the Dy. CIT. It was submitted by the assessee that all the certificates in old forms were prep ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... o them in the month of June. Miss S.G. Desai was transferred in June, 1990 to Wasni, therefore, her certificate was kept ready and as she did not turn up, the same was sent by post on 20th June, 1991 after waiting for sufficient time. Similar explanation was given in case of Shri N.D. Khedkar. It was stated that in 11 cases, the certificates were prepared in time but were handed over late on account of the above circumstances. 4. After considering the above submissions, the learned CIT(A) deleted the penalty observing that there was a reasonable cause and therefore, no penalty should have been levied. The CIT(A) also found from the record that the assessee had issued certificate in old forms. However, the certificates issued were not exac ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... (A) was not justified in holding that there was a reasonable cause for the delay. 6. Shri K.A. Sathe, the learned counsel for the assessee reiterated the submissions made before the authorities below. He strongly relied on the order of the CIT(A). Reliance was also placed on the following decisions: (1) V.M. Somani, Barshj vs. Dy. CIT in ITA No. 66/Pn/1997 for Asst. yr. 1991-92 dt. 13th Oct., 2000 (2) ITO vs. Balaji Seeds Processing (P) Ltd., Jalgaon in ITA No. 854/Pn/1999 for Asst. yr. 1995-96 dt. 26th Nov., 2001 (3) Harsiddh Construction (P) Ltd. vs. Dy. CIT (2001) 70 TTJ (Ahd) 266. 7. We have carefully considered the rival submissions and have also perused the orders of the authorities below. There is no dispute as regards th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... [to which one of us (Judicial Member), was a party], the Dy. CIT had levied penalty under s. 272A(2)(g) of the Act for the asst. yr. 1993-94. As per the provisions of s. 203 of the Act r/w r. 31(3) of the IT Rules, 1962, the assessee was required to issue TDS certificate in Form No. 16A to the person on whose behalf the tax was deducted within one month and fourteen days from the date of credit or payment. In the said case, the main plea of the assessee was that it had deducted the amount of TDS in time and the same was deposited with the Government well within the prescribed time. There was no failure on the part of the assessee to deduct the tax at source and pay to the Government treasury. The Ahmedabad Bench of the Tribunal held that t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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