9911796707
TMI Blog2012 (9) TMI 151X X X X Extracts X X X X X X X X Extracts X X X X ..... ection Account No. RTKA03295F. The e.TDS quarterly statement of Deduction of Tax in Form No.24Q for the financial year 2007-08 as required under sub-section (3) of section 200 of the 2 I.T. Act, 1961 was filed on 15.01.2008. The ITO (TDS), Panchkula while going through the quarterly statement filed by the assessee noted that the Tax Deductor has quoted invalid PAN in five cases. The ITO (TDS), Panchkula after affording an opportunity of being heard to the assessee held that the assessee has committed default u/s 139A (5B) of the Act for which penalty u/s 272B was leviable. He, therefore, levied a penalty of Rs. 50,000/- for the failure on the part of the assessee (Tax Deductor) to make appropriate compliance of provisions of section 139 A o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... is-quoted PAN. It is also the case of the assessee that the PAN was corrected after ascertaining the same from respective deductees. In the case of the Financial Co-operative Bank Ltd v. ITO (supra) the Ahmedabad Bench has held as under:- "We are, therefore of the opinion that since the furnishing of incomplete declaration by the customer was a mistake committed by the Customer and not by the Bank, the failure to comply with the provisions of section 139A as envisaged in sub-sec (1) of Sec 272B of the Act was of the customer and not of the Bank; meaning thereby that the penalty under sec 272B(1) of the Act, if any, is to be imposed, it is to be imposed on the customer and not on the Bank. Bank can be penalized if it fails to comply ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ter of discretion of the authority to be exercised judicially and on a consideration of all the relevant circumstances. Even if a minimum penalty is prescribed, the authority competent to impose the penalty will be justified in refusing to impose penalty, when there is a technical or venial breach of the provisions of the Act or where the breach flows from a bona fide belief that the offender is not liable to act in the manner prescribed by the statute." 5.2 Considering the entire facts and circumstances of the case, we hold that no penalty can be validly levied on facts and circumstances of the present case. We, therefore uphold the order of ld. CIT(A) in canceling the penalty." 6. In the instant case, it is an undisputed f ..... X X X X Extracts X X X X X X X X Extracts X X X X
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