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TMI Blog2021 (12) TMI 446X X X X Extracts X X X X X X X X Extracts X X X X ..... ame amount again. The above situation clearly proves the reasonable cause. Further, the Ld. CIT(A) observed that in view of malafide intention on the part of the appellant as per the facts mentioned in the preceding paragraphs, appellant does not deserve any mercy. We failed to understand this observation when the assessee had followed the instruction of the officer by remitting the TDS dues immediately and also paid the same amount twice and also demonstrated the intricacies in collecting information from Department as well as from suppliers of Karnataka area. In our view, the assessee has proper reasonable cause in this issue of failures to comply in filing the quarterly returns. Therefore, we direct the AO to delete the penalty imposed u/s 272(2)(k) of the Act. - Decided in favour of assessee. - ITA No. 4240/MUM/2018 - - - Dated:- 12-11-2021 - SHRI MAHAVIR SINGH (VICE PRESIDENT) AND SHRI S. RIFAUR RAHMAN (ACCOUNTANT MEMBER) Assessee by : Mr. Viraj Mehta, AR Revenue by : Mr. Yashwant Bhaskar, DR ORDER PER S. RIFAUR RAHMAN, A.M. The present appeal is filed by the assessee against the order of the Commissioner of Income Tax (Appeals)-2, Pune [in short ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... neral and there was no reasonable cause for delay. 4. Aggrieved, the assessee preferred an appeal before the Ld. CIT(A)-2, Pune, after considering the submissions of the assessee, the Ld. CIT(A) sustained the penalty levied by the Addl. CIT(TDS) with the following observation : 5.7 In view of aforesaid discussion on the facts of the case, provision and decisions cited, I hold that it is necessary for the deductor to file e-TDS statements in time so as to enable the processing of the returns in time. The Assessing Authority has also emphasised this aspect in his order. It is emphasized that filing of -TDS statements not only increases the reach of the department but also leads to creation of an audit trail that can be utilized as an effective tool against detection of tax evasion. It is for this reason that stringent action is required to be taken for non-compliance. In such circumstances, it cannot also be urged by learned counsel for the appellant that no penalty could have been imposed for non-filing of the e-TDS statements in time as it has not resulted in any loss to the revenue. The appellant has also not been able to make any case for reasonable cause and the reasons ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and further, against which parties TDS has been deducted. Reasonable Cause - II-Bonafide belief that TDS compliances have been made 7. Since, department has itself directed and finalized the TDS liability of ₹ 1,09915/-, appellant was under bonafide belief that all TDS liability are paid off and there no further compliances to be made Reasonable Cause - Ill- Practical difficulties in collecting PAN Details. 8. Please note that, the Appellant was having business at Hospet in Karnataka State and accounts office was in Maharashtra state, due to which the collecting of Accounting data details and information, PAN details, etc., were not available and also non availability of technical expert computer staff at the remote area far from city. 9. The Appellant has no email online facility with his bankers being proprietor and accounting staff not technical compatible and also situated at remote area from the city. Reasonable Cause -IV TDS Return without Copy of TDS Paid Challan 10. Since, the Department has not given copy of TDS paid Challan to the Appellant, the filing of TDS return was beyond the control of the Asseessee. 11. The Appellan ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nd difficulties being reasonable cause. Reliance is placed on following case laws:- A. S. 272A : Penalty - Failure to answer questions - Sign statements Furnish information - Reasonable cause - Levy of penalty was held to be not justified. [S. 272A(2)(e), 272(2) (k)] Allowing the appeal, the Tribunal held that; delay in filing TDS returns cannot be levied if the delay was caused due to requirement to collect PAN of payees. The non-availability of the PAN of the payees is a reasonable cause. The delay is unintentional and it causes no loss to the revenue as the TDS has been deducted and deposited in the treasury. Wrong levy of penalty ws272.A (2) (k) (failure to deliver TDS certificate) instead of u/s 272 A(2) (c) (delay in filing TDSreturns) shows that AO is not clear of the charge and vitiates the penalty proceedings. (ITA No.52Z/JP/20I6, dt. 24.05.2017) (AY. 2011-12) Argus Golden Trade India Ltd. v JCIT (Jaipur) (Trib), www.itatonline.org B. S. 272A : Penalty -Delay in filing e. -TDS return -Reasonable cause -Levy of penalty was held to be not justified. [S. 272(2) (k), 273B] Allowing the appeal of the assesse, the Tribunal held that, delay i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ical in nature and since levy of penalty was not mandatory, depending upon the facts of the case, the penalty was to be deleted. (AY. 2011-2012) State Bank of Bikaner and Jaipur v. Add. CIT (2015) 38 ITR 535 / 169 TTJ 29 (Chd.) (Trib.) Therefore, humble request is made before your honours to drop the penalty proceedings as there exists reasonable cause for not filing TDS returns on time since delay is unintentional and caused no loss to revenue as TDS has been paid ; in fact twice on same Amount. 7. On the other hand, the Ld. DR relied on the orders passed by the Ld. CIT(A). 8. Considered the rival submissions and material on record. We noticed that the assessee paid the TDS payable subsequent to the survey conducted by the Department. The assessee complied with the directions of the Department but failed to file the relevant TDS quarterly returns due to non-availability of party wise details. It was submitted that TDS was paid through Department directly by cash (Ref. of 6 of P/B) through SBI challan. It is also submitted that the assessee has no clue on which basis such liability was determined. It is mistake on the part of the assessee to comply without unde ..... X X X X Extracts X X X X X X X X Extracts X X X X
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