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2013 (11) TMI 205 - AT - Income TaxPenalty u/s 272A(2)(k) – The exparte order passed by the learned CIT(A) vide order was under the challenge as to the imposition of the Penalty - Held that:- The penalty levied u/s.272A(2)(k) was cancelled for the respective assesses for the respective AYs as captioned in the cause title of this order by allowing the appeals under consideration - In consequence thereof, the respective Stay Petitions become infructuous - penalty levied u/s.272A(2)(k) against the assessee was not justified and as such cancelled the same by allowing the appeal of the assessee – relying upon Royal Metal Printers Pvt. Ltd. Vrs. Asst CIT [2010 (1) TMI 938 - ITAT, Mumbai]. The penalty u/s 272(A)(2) cannot be levied in a routine manner - Law was well settled that a bonafide breach cannot lead to a penalty u/s. 272(A) - Hindustan Steel Ltd. Vrs. State of Orissa 1969 (8) TMI 31 - SUPREME Court - in the present case of the respective assessees either Government bodies or aided by Govt., are public office and since the tax deduction and payment are made by treasury and there is undisputedly no default - There arises no reason for non-filing of TDS return with an intentional act or willful act to attract a quasi-criminal, imposition of penalty. Assessee contended that the penalty was imposed by the Additional CIT (TDS) u/s. 272A{2)(k) of the I.T. Act, 1961 being illegal, arbitrary, uncalled for and against the facts on record and the learned CIT(A) should have quashed the same - the explanation to show cause notice should have been considered by the learned Additional CIT (TDS) judicially and in accordance with law and hence the learned CIT(A) should have considered the same and he was not justified in dismissing the appeal - The taxes having been deposited the authorities below should have taken a liberal view as it is a quasi criminal proceeding and the question of mens rea was involved – Decided in favour of Assessee.
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