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2018 (5) TMI 939 - AT - Income TaxLevying penalty u/s 272A(2)(k) - Delay in quarterly TDS statements submission - ‘reasonable cause’ for delay - assessee submitted the reason for delay as migration to new software system - Held that:- Fact of change of software from ‘Genesis’ to ‘CWISS’ Module by the assessee has not been disputed by the revenue in the instant case. It is quite natural that change of software would lead to various teething troubles which need to be addressed and plugged at the initial stage itself, so that the new Module could function smoothly later on. It is well known that migration to a new software would certainly result in lot of issues on accounting, accounting heads, etc which consumes considerable time for addressing the same. The assessee in the instant case had to undergo the same problems from October 2009 onwards which had been duly stated by the senior branch manager of Serampore Branch, vide letter dated 11.11.2011. the assessee was reasonably prevented from filing its quarterly TDS statements for 2nd and 3rd quarters of financial year 2009-10 with delay due to reasons beyond the control of the assessee. We hold that the explanation offered by the assessee would constitute ‘reasonable cause’ within the meaning of section 273B of the Act and hence the assessee would be entitled for immunity from levy of penalty u/s 272A(2)(k) - Decided in favour of assessee.
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