2023 (5) TMI 256 - AT - Income Tax

Penalty u/s 272A(2)(k) - delay in filling E-TDS - In order JCIT has specifically mentioned that the assessee has not given any reason for the delay in filling the quarterly statements - HELD THAT:- As decided in Raja Harpal Singh Inter College [2016 (5) TMI 1109 - ALLAHABAD HIGH COURT] as observed that timely filling of e-TDS returns helps department to process the returns whose tax has been deducted. E-TDS statements not only increases the reach of the department but also leads to creation of an audit trail that can be utilized as an effective tool against detection of tax evasion. Therefore, Hon’ble High Court observed that stringent action is required against such defaults. The Hon’ble High Court upheld the Penalty Order. No order of Jurisdictional Hon’ble High Court has been brought to our notice.

In this case no valid reason has been given by the assessee for the delay in filling the Quarterly statements. Therefore, it means there is no valid reason for the delay. The assessee in the statement of facts submitted to the CIT(A) has claimed that no loss to revenue has been caused. However, it does not mean that assessee is allowed to skip the provision of filling the quarterly statements. As per the Income Tax Act, assessee was duty bound to file the Quarterly statements within the statutory time limit mentioned in the Act.

It is an admitted fact that the assessee has failed to file the quarterly statements within the statutory time. Therefore, respectfully, following the decision above we uphold the Penalty Order u/s 272A(2)(k) of the Act. We are of the opinion that sufficient opportunity was granted by the ld.CIT(A) and the Joint Commissioner of Income tax but the assessee failed to avail such opportunity. Accordingly, we dismiss the appeal of the assessee.