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TMI Blog2009 (12) TMI 993X X X X Extracts X X X X X X X X Extracts X X X X ..... of deduction of tax at source, prescribed u/s. 206 of the Act, when the expressions used in the proviso to section 272A (2) are tax deductible or collectible and the tax required to be deducted at source had already been deducted and deposited in time in the Government account. The dispute relates to the financial years 1990-1991, 1993-1994 and 1994-1995. Executive Engineer was the prescribed person, as per Section 206 of the Income Tax Act, responsible for furnishing within the prescribed time the returns regarding tax deducted at source under Section 194-C of the Income Tax Act, in Form No.26 C prescribed under Rule 37 of the Income Tax Rules, 1962. There was, admittedly, a delay of 1645, 550 and 214 days in furnishing the retu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he department. The learned counsel in support of the reference submits that there is no loss of Revenue in the present case. The tax was deducted and was deposited within the statutory time. The only default on the part of the assessee is that the returns were not filed within the prescribed period of time. Elaborating the argument, he submits that the assessee is an instrumentality of State or a government officer wherein the officers have no personal interest and as such the delay in late filing of the return should not have been attracted the penal clause and the power not to levy the penalty on sufficient cause being shown, being vested with the Income Tax Authorities, the penalty order is liable to be set aside. In reply, Sri A.N. Maha ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... that there was reasonable cause for the failure of action or omission for which the penalty proceedings were initiated. It may be noted that Section 272 A (2) is also one of the Sections which finds mention in Section 273 B of the Act. Taking into consideration the ground realities of life and the attending facts and circumstances of the case, coupled with the fact that there is no loss of Revenue whatsoever, the Tribunal was not justified in holding that there was no reasonable cause for non filing of the return within the prescribed period. The requirement of filing of the return in the facts of the present case, is more or less a ministerial job. The very idea of making a provision that on sufficient cause being shown, the pena ..... X X X X Extracts X X X X X X X X Extracts X X X X
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