TMI Blog2013 (2) TMI 345X X X X Extracts X X X X X X X X Extracts X X X X ..... AL and GURMEET SINGH SANDHAWALIA JJ. Yogesh Putney for the appellant. Judgment: Ajay Kumar Mittal J.- 1. This appeal has been preferred by the Reve-nue under section 260A of the Income-tax Act, 1961 (in short, "the Act"), against the order dated December 19, 2011, passed by the Income-tax Appellate Tribunal, Chandigarh Bench "B", Chandigarh (for brevity, "the Tribunal") in I. T. A. No. 942/CHD/2011 for the assessment year 2009-10, claiming the following substantial questions of law : "(i) Whether, on the facts and in the circumstances of the case, the hon'ble Tribunal was right in law for deleting the penalty levied under section 272B of the Income-tax Act, 1961, amounting to Rs. 19,60,000 for non-quoting/wrong quoting of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... quoted in the quarterly statement. Accordingly, a show-cause notice was issued to the respondent-assessee as to why penalty under section 272B of the Act be not imposed. The assessee neither appeared nor filed any written submissions. Thereafter, the Income-tax Officer (TDS), Panchkula, passed order dated August 30, 2010, annexure A1 imposing a penalty of Rs. 19,60,000. Aggrieved by the order, the assessee filed an appeal before the Commissioner of Income-tax (Appeals) ("the CIT(A)") which was allowed, vide order dated August 12, 2011, annexure A2 and penalty was deleted. Dissatisfied with the order, the Revenue filed an appeal before the Tribunal which was also dismissed, vide order dated December 19, 2011, annexure A3. Hence, this appeal ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... onable cause for alleged failure on the part of the assessee. In the instant case, the Income-tax Officer (TDS) while going through the quarterly return in Form 26Q, filed by the assessee noted that it has omitted to quote PAN had quoted invalid PAN in 196 cases. As regards the reasonable cause, it was pleaded on behalf of the assessee that TDS was deducted and deposited in time in the Government treasury. The default is only with regard to the wrong quoting of PAN of 196 of the deductees, such deductees quoted wrong PAN. However, correct PAN was given as soon as default was brought to the notice of the assessee. In this case, the Commissioner of Income-tax (Appeals) has categorically observed that the assessee deducted TDS correctly and re ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e-tax (Appeals). Consequently, the appeal filed by the Revenue is devoid of any merit and deserves to be dismissed." 6. Learned counsel for the appellant was unable to show that the findings recorded by the Commissioner of Income-tax (Appeals) as well as the Tribunal are erroneous in any manner. It was urged that there was no reasonable cause on the part of the assessee to furnish inaccurate PAN in Form 24Q. 7. On appreciation of the entire matter, the Commissioner of Income-tax (Appeals) and the Tribunal examined the explanation of the assessee and came to the conclusion that there was sufficient cause shown which would be a question of fact in the given facts and circumstances. Once that was so, there is no substance in the argument r ..... X X X X Extracts X X X X X X X X Extracts X X X X
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