TMI Blog2014 (4) TMI 786X X X X Extracts X X X X X X X X Extracts X X X X ..... essee cannot be taken at its face value and appears to be an afterthought - allegation of the department that only because of the survey action, assessee came forward to file the returns assumes importance - since the assessee has failed to offer reasonable explanation in terms of section 273B of the Act, imposition of penalty is justified - the order of the CIT(A) is upheld for the penalty imposed u/s 272A(2)(k) – Decided against Assessee. - I.T.A. No. 1275/Hyd/2013 - - - Dated:- 11-4-2014 - SHRI CHANDRA POOJARI AND SHRI SAKTIJIT DEY, JJ. For the Appellant : Shri M. Madhusudhan For the Respondent :: Shri Jeevanlal Lavidiya ORDER Per: Saktijit Dey: This appeal by the assessee is directed against the order of the C ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... fered a deadly blow due to telengana agitation, recession in economy, general business decline, particularly in information technology business and various other reasons during the last 4/5 years. Due to this reason, the cash inflows of the assessee was seriously affected and the assessee was not able to pay even salaries in time and meet other financial commitments including TDS payments. It was submitted that due to these reasons there was a delay in filing returns for TDS. The explanation submitted by the assessee was however found to be unsatisfactory because the reasons on which the assessee tried to explain the delay in filing the TDS returns was found to be non-existent as the economic recession as well as telengana agitation happene ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... as the case may be, for any failure referred to in the said provisions if he proves that there was reasonable cause for the said failure. Since the appellant had failed to give any reasonable cause for delay in furnishing of the TDS returns, the penalty levied by the Assessing Officer of Rs. 11,16,000/- is confirmed. It is also pertinent to mention that non-filing of the TDS return in time, having deducted the money, would cause great difficulty for the deductees to take credit for the said amounts. In view of the above discussion, since the appellant happens to be a habitual defaulter and has not submitted any reasonable cause for the said failure of not filing the TDS return within the stipulated time, the penalty levied by the Assessi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . Therefore, the paramount duty of the assessee is to remit the TDS amount within the statutory time limit. Payment of interest u/s 201(1A) of the Act will not absolve the assessee from penal consequences because interest is compensatory in nature whereas penal provisions are by way of deterrent measure. Therefore, for escaping from rigors of penalty, the assessee has to satisfy the Assessing Officer that there was a reasonable cause for the default committed by him. As can be seen from the explanation of the assessee, while before the Assessing Officer the assessee had explained that the delay in filing of the quarterly returns was due to telengana agitation and economic recession, at the time of hearing before us it is contended that ther ..... X X X X Extracts X X X X X X X X Extracts X X X X
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