9911796707
TMI Blog2002 (7) TMI 404X X X X Extracts X X X X X X X X Extracts X X X X ..... deduction of TDS or its payment after deduction into Govt. account. A perusal of the penalty order shows that the due date for issue of TDS certificates is mentioned as also the actual date of issue and in the last column the delay has been worked out the cumulative figure coming to 2618 days. 3. At the penalty stage a show cause notice was issued to the assessee and in a detailed reply filed the following submissions were made :-- (i)The provisions of TDS had come into light recently and most of the staff was not aware of the provisions and there was no specialized person, such as, a Chartered Accountant, employed on the pay-roll of the company; (ii)The accounting work was handled by one Shri Manoj Makhija, who ultimately left the asse ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he partners could not leave their responsibility to the Chartered Accountant. He was also of the view that ignorance of law was not an excuse for non compliance with the provisions of the Act. The Assessing Officer also did not accept the argument about the relevant form being not available and in the ultimate analysis, he concluded that the assessee had deliberately defaulted in not issuing the certificates in time and, therefore, provisions of section 272A(2)(g) were squarely attracted. The Assessing Officer proceeded to levy a penalty of Rs. 2,61,800 @ Rs. 100 per day for 2618 days. 6. Before the Commissioner of Income-tax (Appeals), arguments advanced before the Assessing Officer were reiterated and emphasis was placed on the fact that ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he parties and have also perused the orders passed by the tax authorities. The learned counsel for the assessee reiterated the arguments advanced before the tax authorities placing reliance on the same very decisions plus the judgment of the Hon'ble Gujarat High Court in the case of CIT v. Harsiddh Construction (P.) Ltd. [2001] 118 Taxman 760 and that of the Delhi Benches of the Tribunal in the case of Aroma Chemicals v. Dy. CIT [2002] 121 Taxman 31 (Mag.). He also referred to his paper book wherein he had given details of the TDS, copy of the annual return filed under section 206 and lastly, the replies filed with the Assessing Officer and the written submissions addressed to the Commissioner of Income-tax (Appeals). It was reiterated and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Commissioner of Income-tax (Appeals). 10. In coming to the levy of penalty itself, however, we are inclined to accept the numerous arguments advanced by the learned counsel for the assessee and it is noteworthy that the total interest paid to the persons from whom money had been borrowed whether friends or relatives or outsiders, amounts to Rs. 36,000 and odd and such a fact emerges from the written submissions filed before the Commissioner of Income-tax (Appeals). It is also an accepted fact that tax was deducted in time and the same was deposited in the Govt. Treasury in time. It is also an accepted fact that the assessee issued a consolidated certificate to each of the depositors in respect of TDS and it also filed annual return under s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... entical penalty and taking note of the fact that tax had been deducted at source within the specified time and deposited in the Govt. account and considering the assessee's bona fide belief that the certificate under section 203 could be forwarded at the end of the accounting year, Their Lordships confirmed the view taken by the Tribunal to cancel the penalty. Their Lordships emphasized on the fact that there was no loss of Revenue. As the facts in the present case, are identical, we respectfully follow the judgment of the Hon'ble Gujarat High Court and cancel the penalty. This would mean that vis-a-vis the Revenue's appeal, we uphold the order of the Commissioner of Income-tax (Appeals) on a ground different to the one on which he had allo ..... X X X X Extracts X X X X X X X X Extracts X X X X
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