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2018 (9) TMI 1740 - AT - Income TaxLevying penalty u/s 272A(2)(k) for late filing of TDS returns - 'Person Responsible’- reasonable cause for the failure as provided u/s 273B - Held that:- In the absence of any specific order to deduct tax at source, refrained from doing so, presuming that it was being continued to be done by PCDA(WC) and it was only when ITO-TDS, issued notice to it requiring it to file TDS return vide letter dated 9.1.2014 that they come to know of the default and hence the delay. Copies of all correspondence in this regard were also placed. No infirmity in these facts have been pointed out to us by the Revenue. It is therefore abundantly clear that the ‘Person Responsible’ had a bonafide reason for the delay in filing TDS returns. Being required to comply with the TDS requirements and compliances for the first time and that too not being specifically intimated to do so by the authority who was earlier doing it, the ‘Person Responsible’s belief that the authority was continuing to do so was a bonafide and reasonable belief. Filing of TDS return later on, only on being required to do so by the ITO TDS, automatically resulted in delay on account of a reasonable cause. There is no merit in the contention of the CIT(Appeals) that the penalty was justified considering the huge period of delay. The assessee having duly explained the cause for the delay. “Person Responsible” cannot be held responsible for the delay nor can be said to have consciously disregarded the obligation cast upon him. We hold that the assessee having shown reasonable cause for the delay in filing TDS return, no penalty u/s 272A(2)(k) of the Act is leviable and the same is, therefore directed to be deleted. - Decided in favour of assessee.
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