TMI Blog2014 (4) TMI 526X X X X Extracts X X X X X X X X Extracts X X X X ..... bona fide belief that the certificate in question was to be issued after the close of the financial year - a consolidated certificate was issued to the deductee - instead of holding that it was merely a technical or default of a venial in nature, it has been held that the failure referred was because of a reasonable cause – thus, no penalty is imposable on the assessee u/s 272A(2)(g) of IT Act – Decided against Assessee. - ITA Nos.56 & 57/Ahd/2011 & CO Nos.34 & 35/Ahd/2011 - - - Dated:- 24-1-2014 - Mukul Kr Shrawat And N S Saini, JJ. For the Appellant : Shri J P Jhangid, Sr.DR For the Respondent : Shri Dhinal Shah, AR ORDER:- PER : Bench Revenue has fil ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... visions of Rule 31 of the IT Rules, 1962 without any sufficient and reasonable cause and such the default as committed are punishable u/s. 272A(2)(g) read with Section 272A(3)(c) of the Act. I am, therefore, satisfied that this is a fit case for levy of penalty u/s.272A(2)(g) of the Act. On verification of the Annual return in Form No.26-C alongwith copy of certificate or TDS submitted by the assessee for the period of F.Y.1992-93 it is noticed that the assessee issued 21 (twenty one) certificate of TDS to the contractors showing credit/payments of sum of contract to the account of contractors u/s.194-C of the Act. It is seen that the assessee issued 21 combined and consolidated showing 92 payments made to the contractors on different dates ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... assessee to furnish the certificate in respect of tax deducted at source within the time prescribed under the relevant section 203 read with Rule 31 discloses an offence for the purpose of Section 272A(2)(g). It is submitted that the only offence covered by the provision of the Section 272A(2)(g) is the case where an assessee having deducted tax at source does not furnish certificate of tax deducted at source to the person concerned. The failure to furnish the aforesaid certificate within the prescribed time is not an offence which is punishable under the provisions of the Section 272A(2)(g). This is clear when on reads the language of the 272(2)(g) and compares it with the other provisions of the Act dealing with penalty. Wherever a penal ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... dated 20.11.1995 for A.Y. 1994-95 passed by the DCIT, Bhavnagar Range and allow both the Appeals with consequential relief to the Appellant. 3. With this factual and legal background, we have heard both the sides. At the outset, we have been informed that almost on identical circumstances the penalty u/s.272A(2)(g) had been deleted by the Respected Jurisdictional High Court in the case of CIT V. Harsiddh Construction Pvt. Ltd., 118 Taxmann 760 (Guj). 3.1 In addition to the above decisions, we have also been informed that the issue of furnishing of the required certificate kept on changing through several amendments in the statute itself which has caused this default. Learned AR has informed that as per the provisions of Section 272A( ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... shed to a deductee during a financial year then the person deducting the tax, i.e., deductor may on a request from such payee/deductee can issue within one month from the close of the financial year a consolidated certificate for tax deducted during whole of such financial year. Because of the frequent amendments in Rule 31 of IT Rules, the assessee being a deductor was under a bona fide belief that the said provisions have gradually been followed for the year under consideration. However, the Revenue Department had noticed that the rule got changed in the later years; hence, the assessee as a deductor had committed impugned fault. 3.1 After considering the totality of the circumstances of the case and hearing both the sides, we are of t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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