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2019 (5) TMI 282 - AT - Income TaxLevy of penalty u/s 272A(2)(k) - failure to deliver quarterly TDS returns as required to be filed under the provisions of section 200(3) - delay in filing return in Form No.24Q for all the four quarters by 940 days and in Form No.26Q for all the quarters by 1324 number of days - delay of 2264 number of days cumulatively - reasonable cause on the part of the assessee for delayed deposit of the TDS and non-furnishing of the TDS returns HELD THAT:- Bank account of the assessee was declared as NPA and public notices were given. The assessee company has drastically reduced its number of offices and had retrenched certain employees due to the financial crisis that it had undergone. The development project was also dropped because of financial crisis and liquidity crunch. There is also default on the part of the assessee to adhere to the one time settlement of its secured loan outstanding. All these facts indicate that there was some problem going on in the financial affairs of the assessee company. Under these circumstances, we are of the considered opinion that there was a reasonable cause on the part of the assessee for delayed deposit of the TDS and non-furnishing of the TDS returns in Form No.24Q and 26Q for all the four quarters during F.Y. 2010-11. As relying on JCL INFRA LTD. C/O. M/S. DEEPAK JAIN & CO. [2018 (7) TMI 1315 - ITAT DELHI] and M/S. AQUAFIL POLYMERS CO. PVT. LTD., [2016 (2) TMI 1079 - ITAT AHMEDABAD] there was a reasonable cause on the part of the assessee for non submission of the TDS returns in Form No.24Q and 26Q for F.Y. 2010-11 within the meaning of provisions of section 273B - Decided in favour of assessee.
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