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TMI Blog2007 (8) TMI 326X X X X Extracts X X X X X X X X Extracts X X X X ..... 2-8-2007 - MADAN B. LOKUR and V. B. GUPTA JJ. Mrs. P. L. Bansal for the appellant. None appeared for the respondent. JUDGMENT The judgment of the court was delivered by V. B. Gupta J.- The common question involved in both the appeals is as to whether the Income-tax Appellate Tribunal (for short as "the Tribunal") was right in deleting the penalty imposed by the Assessing Officer under section 272A(2)(g) of the Income-tax Act, 1961 (for short as "the Act"). 2. These two appeals have been filed by the Revenue against the common order dated September 4, 2006, passed by the Tribunal in ITA Nos. 4417 and 4418/Del/2004 for the assessment year 2000-01 whereby the Income-tax Appellate Tribunal deleted the penalties imposed ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hallenged the order of the Commissioner of Income-tax (Appeals) before the Tribunal and the Tribunal, vide the impugned order deleted penalty holding that there was reasonable cause with the assessee for failure to issue the tax deducted at source certificates within the stipulated time. 9. Learned counsel for the Revenue has contended that negligence or inaction on the part of the assessee would not constitute a reasonable cause within the meaning of section 273B of the Act and for imposing penalty under section 272A(2)(g), mens rea is not required and as soon as the default is committed, the penalty has to be levied. 10. In support of her contentions learned counsel cited a decision of the Supreme Court reported as Gujarat Trava ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... oncluded by the findings of fact based on appreciation of evidence and the material that was placed before it. In such a case, the Tribunal can be held fully justified in upholding the order of the first appellate authority which deleted the penalty. 13. In the case in hand, the Tribunal after considering all the facts held : "the assessee-company was under lockout since June 16, 2000, which has not only affected the production, but also carrying out other statutory obligations. As a result of lockout, most of the employees have left and the assessee was forced to work with skeleton staff and no senior/experienced person was left for looking after tax matters. Levy of penalty under section 272A(2)(g) is subject to reasonable cause as ..... X X X X Extracts X X X X X X X X Extracts X X X X
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