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2017 (1) TMI 1632 - AT - Income TaxPenalty u/s 272A(2)(k) - penalty for technical default in delay in filing TDS returns - Held that:-The assessee is around 66 years of age and is suffering from brain hemorrhage since May 2014 and he is unable to take care of himself. The Court order attached certifies the mental illness of the appellant and authorizes appellant’s wife to act on behalf of the assessee. The assessee has been regular in filing its TDS returns in other assessment years and has also been regular in filing income tax returns in all the assessment years. The delay was only procedural and default, if any, was not deliberate and intentional. No deliberate intention of delaying the submission of TDS returns. This shows the bonafide of the assessee in complying with the provisions of law. Late filing of TDS returns is a technical default. One should not be penalized for technical default. There was only a technical and venial breach of the provision contained in rule 31A of the I.T. Rules, 1962, requiring the assessee to submit quarterly statements of deduction of tax under section 200(3) within the time prescribed. Such delay had not caused any loss to the Revenue. The Tribunal in Rajasthan Tribal Area Development Co–Op. Federation Ltd. v/s ITO (1997 (4) TMI 123 - ITAT JAIPUR) held that for mere failure to furnish TDS returns, penalty was not justified as there was no default in deducting tax at source or in deposing the tax in government treasury. The Tribunal, Mumbai Bench, in Royal Metal Printers Pvt. Ltd. v/s ITO, [2010 (1) TMI 938 - ITAT, MUMBAI] had categorically stated that the delay in filing the TDS returns even if they are characterized as negligence on the part of the assessee, can only be considered as a technical or venial breach of law for which penalty should not be levied automatically.- Decided in favour of assessee
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