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2020 (1) TMI 1051 - AT - Income TaxPenalty u/s.272A(2)(k) - no reasonable explanation for huge delay in filing the TDS Returns i.e. 24Q and 26Q statements by assessee - HELD THAT:- The assessee is paying salary to his employees and he should have asked to the deductee for furnishing PAN before making salary payments. Assessee could not demonstrate that the assessee has furnished any reasonable cause for non-furnishing of PAN by the deductee so as to enable him to get the benefit of Section 273B and he has deducted TDS and deposited to the Government within the time with the prescribed authority. We understand that the MCL is a big company wherein tax experts are also working and this also not the first time scheme for filing return. TDS has been deducted and paid to the Government but in case of refund the exchequer suffers loss by way of interest on refund which has paid by the Income Tax Department to the deductee. The assessee could have asked to his employees to furnish their PAN by way of in writing so that it can be considered that there was a reasonable cause for not filing of PAN by the deductee, however, no such instance has been provided by the ld. AR of the assessee before us. The assessee was also not prevented by any reasonable cause for delay in filing the 24Q & 26Q statements as required by the Act for all the quarters in a financial year. Quarterly filing TDS return has been introduced by the Government since 2003 which requires the quarterly submission of the TDS return with NSDL or other approved agencies by the Income Tax Departemnt. The assessee cannot escape himself for non-filing quarterly TDS merely stating that the PAN of the employees are not available. The penalty is provided in the Income Tax provisions u/s.272A(2)(k) is mandatory in nature except in case of reasonable cause proved by the assessee, which is lack in this case. Lower authorities are justified to impose the penalty as per the provisions of Section 272A(2)(k) - there is huge delay for filing the quarterly TDS return. - Decided against assessee.
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