TMI Blog2011 (3) TMI 1030X X X X Extracts X X X X X X X X Extracts X X X X ..... d and paid to the Government - Only the paper work was delayed, which is only a technical breach - Though the penalty order refers to section 206/206C, the default, as found by the CIT(A) and as explained before us, is u/s 200(3) of the Act - It may also be added that the penalty order seems to be in a cyclostyled form without referring even to the appropriate section - This may show non-applicati ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the assessee failed to comply with section 206/206C of the Act. Under section 206, persons deducting tax are liable to furnish prescribed returns within a particular time limit. The time limit was fixed by the Income Tax Rules. The assessee failed to furnish the returns within the time prescribed by the Rules in respect of the four quarters comprised in the financial year 2005-06. These details a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... oduction of the provision. (b) Under Rule 31A of the Income Tax Rules, the assessee has to obtain Permanent Account Numbers from the deductees. Since the deductees were small time labourers, there was difficulty in collecting those details from them. (c) The nature of the contract was such that the assessee had to employ labour contractors from many unorganized sectors, which made it more ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... opinion, also constitute reasonable cause for the delay. We may clarify that though the penalty order refers to section 206/206C, the default, as found by the CIT(A) and as explained before us, is under section 200(3) of the Act. It may also be added that the penalty order seems to be in a cyclostyled form without referring even to the appropriate section. This may show non-application of mind. B ..... X X X X Extracts X X X X X X X X Extracts X X X X
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