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TMI Blog2015 (9) TMI 430X X X X Extracts X X X X X X X X Extracts X X X X ..... convenience, facts are taken from I. T. A.No. 236/CTK/2014. The following grounds are raised by the assessee: 1. Because that the Ld. CIT(A-1) erred in law as well as in fact by confirming the penalty imposed u/s. 272A(2)(k) not appreciating the fact that the TDS returns are filed after the TDS is deposited. 2. Because that the Ld. CIT(A-1) erred in law as well as in fact by confirming the penalty imposed u/s. 272A(2)(k) which is unjust, arbitrary, excessive and not in accordance with the law. 3. The appellant may add, alter, delete or amend any of the grounds at the time of hearing of the matter." 3. Short facts of the case are that the assessee has filed the quarterly e-TDS statements in Form Nos. 24Q & 26A for difference quarters ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ees. After deposit of TDS the company had made all possible efforts to obtain the required number of PANs from the deductees. The assessee failed to obtain the PANs as required to be filled up in the TDS returns as many of employees had left and many contractors / professionals had stopped working for the company the TDS returns could not be filed in time. Learned AR relied upon the order of the Mumbai Tribunal in the case of M/s. Porwal Creative Version P. Ltd. Vs. ACIT(TDS), Mumbai in I. T. A.Nos.5556 & 5557/Mum/2009. Learned AR submitted that the Tribunal has deleted the penalty on the ground that if the assessee fails to deduct the tax at source and after deducting fails to pay the same to the Central Government due to financial hitches ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... delivered to the prescribed income-tax authority or the person authorised by such authority such statement in such form and verified in such manner and setting forth such particulars and within such time as may be prescribed:] 8. Thus, under the provisions of sec. 200(3) r. W. R. 31A, a quarterly statement of TDS in Form No. 26Q is required to be filed by the assessee by 15th July, 15th Oct., 15th January & 15th June (last quarter of the year. In all these cases, there was delay as indicated by Assessing Officer in his table, which was reproduced in this order. The penalty has therefore been levied @ 100/- per day of default is staring from the due date to the date of filing the quarterly return. The case of the assessee is that it had de ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... date of payment of tax is already explained on the ground that the assessee could not pay the taxes for which separate penal provisions exist. The assessee has also explained the reasons for not paying the tax to the Central Government in time which was because of financial difficulties. The assessee has filed the copies of P & L account and balance sheet to substantiate the claim that it was incurring losses and there were substantial liabilities on account of creditors. The assessee has placed reliance on the decision of Mumbai Tribunal in which financial hitches have been accepted as reasonable cause for default in payment of tax. Once the delay in payment of tax is explained satisfactorily, penalty u/s. 272A(2)(k) of the Act cannot be l ..... X X X X Extracts X X X X X X X X Extracts X X X X
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