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TMI Blog2015 (5) TMI 758X X X X Extracts X X X X X X X X Extracts X X X X ..... y, we are of the considered view that the penalty so levied in the case of the assessee is not all justified. We, therefore, cancel the penalty levied u/s.272A(2)(k) for the assessee for the respective AYs. - Decided in favour of assessee. - ITA No.339 & 340/CTK/2014 - - - Dated:- 4-3-2015 - P K Babnsal And D T Garasia JJ. For the Appellant : Shri P C Sethi, AR For the Respondent : Shri Sital Chandra Das, DR ORDER Per: D T Garasia: These appeals by the same assessee are directed against the separate orders of ld. CIT (A)-1, Bhubaneswar each dated 10/03/2014 for the A.Ys. 2010-11 2011-12. The issue involved in these appeals is common, so these are being disposed of by this consolidated order. 2. The following grounds are raised by the assessee:- 1. That, the learned CIT (A) has committed serious error in not quashing the penalty order imposed by the learned Joint Commissioner of Income-tax (TDS), Bhubaneswar which is per se illegal, arbitrary, without jurisdiction, contrary to the provisions of the Act and has been made in gross violation to the principles of natural justice. 2. That, the learned CIT (A) has committed serious error in not quash ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 0 0 24Q 2 nd 15.10.2009 -do- 958 2,519 2,519 24Q 3 rd 15.1.2010 -do- 866 0 0 24Q 4th 15.5.2010 -do- 746 0 0 26Q 1 st 15.7.2009 29.1.2012 928 0 0 26Q 2 nd 15.10.2009 -do- 836 17,609 17,609 26O 3 rd 15.1.2010 -do- 744 16,487 16,487 26Q 4th 30.6.2010 -do- 593 13,84,567 59,300 Total 6721 14,21,182 95,915 For ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... at length. We do find that the penalty so levied by the AO and confirmed by the learned CIT(A) appears to be leaning more on holding assessee in default for such penalty as a mechanical/ automatic levy insofar as it is the Department itself, who has insisted the e-filing of such returns as late as making the assessee literate about the data to be uploaded on the basis of tax deducted at source already given credit to by the I.T. Department on the basis of TDS certificates furnished by the assessee namely the deductee. The bonafide is established beyond doubt when the very fact that the quarterly returns for more than four quarters and less than eight quarters were filed simultaneously on the same date when assuming but not accepting that the assessee in default become suddenly computer literate. We have also considered the submissions of the learned DR that the filing of quarterly statement was in favour of the assessee on the basic connotation that the deductee would only be given credit to such deduction of tax at source once the e-filing by the deductor was on-time not requiring penalty @Rs.100 per day as have been put forth by the Assessing Officer and confirmed by the learned ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s entrusted to an authorized service provider and the delay has occurred unintentionally. The assessee deductor is law compliant and the delay occurred only due to the reason that the assessee deductor is dependent on information of TDS and its deposit from the sub treasury of the Government and filing of e-return through the designated service provider of Income-tax Department. The assessee deductor has no technical competency to file the return by itself without external aid. The assessee is also not competent to do so by itself as per rule 37B and Filing of Return of Tax deducted at source scheme 2003, which requires the submission of quarterly statement through NSDL or other approved agencies i.e third party, not under the control of the assessees. There is neither any willful negligence nor any malafide on the part of the assessee in the matter of compliance and the delay was due to reasonable cause, the default being beyond the control of the assessee deductor. It is at best a technical or venial breach of the provisions of the act or where the breach flows from a bonafide belief that the assessee is not liable to act in the manner prescribed by the statute. The penalty u/s ..... X X X X Extracts X X X X X X X X Extracts X X X X
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