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TMI Blog2014 (9) TMI 759X X X X Extracts X X X X X X X X Extracts X X X X ..... as under a bona fide belief that the provisions have been followed - no penalty shall be imposable on the person or the assessee, as the case may be, for any failure referred to in the provisions, if he proves that there was reasonable cause for the failure – here, the assessee has proved that there was a reasonable cause for the failure in complying with the provisions of section 272A (2)(g) of the Act - Once reasonable cause has been established by the assessee, no penalty u/s 271A(2)(g) of the Act could have been imposed on the assessee – the order of the Tribunal is upheld – Decided against revenue. - Tax Appeal No. 931 of 2014, Tax Appeal No. 932 of 2014 - - - Dated:- 8-9-2014 - Harsha Devani And Sonia Gokani,JJ. For the Appel ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ugned order is erroneous inasmuch as the Tribunal has merely observed that because there are frequent changes in the relevant provision of the Act, the assessee had formed a bona fide belief that it was not required to issue the certificates in question within the prescribed period. It was argued that mere changes in the relevant statutory provisions can by no means be stated to be a valid reason for holding a bonafide belief on the part of the assessee and that the impugned order does give rise to a substantial question of law warranting interference in exercise of powers under section 260A of the Act. 4. As can be seen from the order passed by the Assessing Officer under section 272A(2) read with section 272A(3)(c) of the Act, penalty ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of a reasonable cause. Placing reliance on the provisions of section 273B of the Act, the Tribunal held that no penalty was imposable on the assessee under section 272A (2)(g) of the Act. 6. From the findings recorded by the Tribunal, it appears that rule 31 of the Income Tax Rules, 1962 which prescribes that a certificate of deduction of tax at source by any person deducting the tax shall be in Form 16, came to be substituted on a number of occasions and under the old provision, the requisite certificate was required to be issued by the Revenue Department on an application by the deductor, but later on, that rule was substituted. Moreover, under the old rule, the requisite certificate was to be issued on a particular time period on eac ..... X X X X Extracts X X X X X X X X Extracts X X X X
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