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2018 (9) TMI 1614 - AT - Income TaxLevy of penalty u/s 272A(2)(k) - delay in remittance of the TDS Amount in the Govt. Account - whether the explanation tendered by the appellant in support of delay in submission of quarterly returns can be considered to be plausible? - Held that:- The explanation that the delay was caused on account of delayed remittance of tax deducted amount to the Govt. Account and the ignorance of the provisions of law on the issue as the company was newly set up can be considered to be reasonable having regard to the ratio laid down in the case of Budhan Singh & Sons [1983 (1) TMI 71 - ALLAHABAD HIGH COURT] wherein it was held that when the assessee is in the first year of business operations, ignorance of provisions of law can be held to be reasonable cause for non-compliance of the provisions of law. Further the columns of Form 26Q also contains columns requiring the details as to the date of the deposit of the TDS Amount in the Govt. Account. Therefore, when there is a delay in remittance of the TDS Amount in the Govt. Account, this would constitute a reasonable cause for not filing the prescribed returns within the due date. The statute also prescribes different penal provisions for delay in remitting the TDS amount to the Govt account. The explanation tendered by the assessee cannot be termed as unreasonable or unplausible. Therefore we are of the considered opinion that the case on hand is not a fit case for levy of penalty u/s. 272A - Decided in favour of assessee.
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