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2015 (7) TMI 332 - AT - Income TaxPenalty order under sec. 272A(2)(k) - as a result of survey/verification exercise carried out by the ITO(TDS), serious default on TDS payment were unearthed - assessee had not filed e-TDS return in form No. 24Q, 26Q and 27EQ and also could not provide any reasonable cause for such to furnish the e-TDS returns by the due date - whether penalty order barred by limitation? - Held that:- FAA for the assessment year 2006-07 on similar issue held that legally the limitation starts from the issue of first notice by the Addl.CIT(TDS)[ competent authority] dated 25-02- '2010. The penalty has been imposed before 30-08-2010 i.e. on 16-03-2010. Therefore, it cannot be said that the penalty order passed U/S 272A(2)(k) of the Act is barred by limitation. It appears that the appellant had taken the date of initiation of penalty U/S 272A(1)(c) of the Act from the date of order passed u/s 201(1)/201(1A) of the Act on 27-06-2008 which is legally incorrect. On the other hand, the action of ITO, (TDS) in initiating proceedings U/S 272A(2)(k) of the Act is not correct in view of the relevant provisions of the Act. The ITO(TDS) instead of initiating proceedings U/S 272A(2)(k) of the Act should have mentioned that " the case is being referred separately for imposition of penalty u/s 272A(2)(k) of the Act to the Addl.CIT(TDS)" who was the competent authority. Thus it is held that the order passed by Addl.CIT(IDS) u/s 272A(2)(k) of the Act dated 16-03-2010 is held as fully valid. Submissions made by the appellant on the issue of matter being barred by limitation are hereby rejected. A perusal of the aforesaid statement reveal that there is definitely delay in furnishing e-1DS returns in Form Nos.24Q, 26Q and 27EQ for the relevant accounting period. Thus the appellant's contention that there was no default in furnishing e- IDS returns has no force and is accordingly rejected. Thus the action of the Addl.CIT(IDS) in imposing penalty u/s 272A(2)(k) of the Act is upheld in principle. - Decided against assessee.
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