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TMI Blog2016 (6) TMI 97X X X X Extracts X X X X X X X X Extracts X X X X ..... the second proviso to section 272A(2), no penalty shall be levied under this section for failure referred to in clause (k), if such failure relates to a statement referred to in section 200(3) or the proviso to section 206C(3) which is to be delivered or caused to be delivered for tax deposited at source or tax collected at source, as the case may be, on or after July 1, 2012. Thus, no penalty is leviable after July 1, 2012, as is specified in the second proviso to the aforesaid section. Since the levy of penalty is not mandatory in each and every case and depends upon facts of the case, therefore, considering the explanation of the assessee in the light of above order in the case of State Bank of Bikaner and Jaipur (2015 (10) TMI 1396 - ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and it was submitted that the assessee being a branch of a nationalised bank, was liable to deduct TDS on interest paid or payable on various deposits of its customers and to file return of TDS according to section 206 of the Income-tax Act within the time allowed. The assessee has duly complied with the statutory requirement of deducting and depositing the tax due on or before the due date but the assessee was prevented by sufficient cause in not filing the return of TDS within the time specified under section 200(3) of Income-tax Act. The explanation is not doubted by the Assessing Officer and penalty was imposed for not filing the TDS return within the due date. It was submitted that the main reason for inability of the assessee to file ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... led to deliver the statement within the specified time under section 200(3) or the proviso to section 206(3) of the Act. The learned Commissioner of Income-tax (Appeals), accordingly, confirmed the penalty and dismissed the appeal of the assessee. 4. After considering the rival submissions, we are of the view penalty is not leviable in the facts and circumstances of the case. It is not in dispute that the assessee deducted TDS on the interest and paid to the Revenue Department. Therefore, there is no loss caused to the Revenue Department. The penalty is imposed against the assessee because the TDS return was not filed within time. The assessee explained that since most of the clients of the assessee-bank did not intimate permanent accoun ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... a delay of 252 days and 160 days, however, the amount of TDS has been paid by the assessee which is noted in the penalty order. The assessee has contended before the learned Commissioner of Income-tax (Appeals) that since the taxation system was centralised by the head office and the branch was not aware that returns were to be filed at the branch level, therefore, on clarification from the head office, the TDS returns have been filed. Section 273B of the Income-tax Act provides that no penalty shall be imposable on the person or the assessee, as the case may be, for any failure referred to in section 272A(2) of the Income-tax Act if he proves that there was reasonable cause for the said failure. In this case, the assessee explained that th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ss of revenue involved at all and even the contractors had not raised any grievance about late issue of the certificates. This explanation did not find favour with the Assessing Officer, who levied a penalty of ₹ 1,03,900 which was equal to ₹ 100 per day for failure of 1039 days. The Commissioner (Appeals) cancelled the penalty but the order was restored by the Tribunal. On appeal to the High Court : Held, that the tax deducted at source had been paid in time and the necessary return in respect thereof was duly filed in time with the Income-tax Department. No loss of revenue had occurred on account of late issue of tax deduction certificates. None of the contractors had raised any grievance on account of late supply of the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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