By Jagdish D. Shah, Jagdish T. Punjabi Chartered Accountants
Argus Golden Trades vs. JCIT
Kul Bharat (J. M.) and Vikram
Singh Yadav
(A. M.)
ITA No.: 522/JP/16
A. Y. : 2011-12.
Date of Order: 24th May, 2017
Counsel for Assessee / Revenue:
Rajeev Sogani / Rajendra Jha
FACTS
The AO imposed penalty u/s.
272A(2)(k) holding that the assessee
has delayed in filing quarterly
e-TDS return within the stipulated time frame. The CIT(A) upheld the order of the AO as
according to him the provisions of
section 272A(2)(k) uses the word “shall” indicating that if there is violation
of these provisions, the imposition of penalty is mandatory. Also, the assessee was not having any genuine
ground or the compelling circumstances for not filing of TDS return in
time. Before the Tribunal, the revenue
justified the order of the CIT(A).
HELD
The Tribunal
noted that the AO hads levied penalty u/s. 272A(2)(k) which talks about the failure to deliver a
copy of the statement within the time specified in section 200(3) or proviso to
section 206C (3). In the instant case, there
is a delay in filing of quarterly e-TDS returns which is covered under the
provisions of section 272A(2)(c). On this ground itself, the Tribunal held that
the levy of penalty cannot be sustained.
On merit also, the Tribunal noted that during the financial year 2010-11
which is under consideration, a change was brought about in filing of e-TDS
returns and it was necessary to mention Permanent Account Numbers of all the
payee in the e-TDS return and thereafter only the e-TDS return could be
validated and uploaded. In assessee’s case, there were large numbers of
deductees scattered throughout India.
The taxes were deducted and deposited at the prescribed rate with delay
of few days. Thus, there was no loss to
the Revenue which could be attributed to the delay in filing of the e-TDS
returns. Relying on the decision of the
Cuttack bench of Tribunal in the case of CIT Branch Manager (TDS), UCO Bank
vs. ACIT (35 taxmann.com 45), the
Tribunal held that the assessee had a reasonable cause for delayed filing of
its e-TDS returns in terms of section 273B and hence, the penalty u/s. 272(A)(k)
was deleted.
