By JAGDISH D. SHAH | JAGDISH T. PUNJABI
Chartered Accountants
11. Sai Satyam
Hospitals Private Ltd. vs. Addl. CIT-TDS Range
Members: Sandeep Gosain (J.M.) and Manoj Kumar Aggarwal
(A.M.)
I.T.A. No.: 3220/Mum./2018
A.Y.: 2011-12
Date of order: 15th July, 2019
Counsel for Assessee / Revenue: Dr. Prayag Jha / Chaudhury
Arun Kumar Singh
Section 273B read with
section 272A(2)(k) – Delay in filing TDS return for want of PAN considered as
reasonable cause and penalty imposed was deleted
FACTS
For a delay of 389 days in filing TDS return in Form No. 26Q,
a penalty of Rs. 38,900 u/s 272A(2)(k) was imposed by the AO. The CIT(A), on
appeal, confirmed the order.
Before the Tribunal, in order to make out a case of
reasonable cause, the assessee inter alia pleaded that the delay was due
to non-availability of the PAN of the deductees, without which the return could
not be uploaded; there was no evasion of tax or loss to the government since
the assessee had deducted and paid the taxes to the Government.
HELD
The Tribunal noted that the directors of the assessee company
were doctors who may not be well-versed with the technicalities of TDS
provisions; besides, in the TDS return filed, there were 30 deductees’ records
and the PAN was quoted in all the records; moreover, due TDS had been deducted
and deposited by the assessee in the Government treasury.
The Tribunal also noted the fact that many changes had been
brought about in the financial year 2010-11 by the Act in filing of e-TDS
returns wherein it was necessary to quote cent percent valid Permanent Account
Numbers of the payees in the e-TDS returns and only thereafter could the e-TDS
returns be validated and uploaded in the Income-tax System.
Therefore, for the reason that there was no loss
to the Revenue and the delay in filing of the e-TDS returns was unintentional
on the part of the assessee, and keeping in view the assessee’s background, the
penalty imposed by the AO was deleted.
