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2021 (8) TMI 218 - AT - Income TaxLevy of penalty u/s. 272A(2)(k) - belated filing of TDS returns u/s. 200(3) r.w.r. 31A of the IT Rules, 1962 for the various quarters of A.Y. 2008-09 - HELD THAT:- There is a delay in filing of quarterly returns by the assessee, the same in the peculiar facts and circumstances of the instant case, would only amount to technical venial breach committed by the assessee. The very purpose of filing of quarterly TDS returns within time is only to ensure that the deductees are given due credit of TDS in their respective returns of income. In the instant case, the assessee had also submitted before the CIT(A) that deductees had indeed claimed credit for TDS in their returns of income. We hold that assessee was prevented from reasonable cause in not filing its TDS returns within prescribed time and in any case had not created any loss to the exchequer by way of delayed remittance of TDS. There is only a mere procedural delay of electronically filing its TDS returns. In our considered opinion, no penalty could be levied for a mere technical venial breach on the part of the assessee. Reliance in this regard is also placed on the decision of the Hon'ble Madras High Court in the case of CIT vs. Arunachalam [1994 (1) TMI 65 - MADRAS HIGH COURT] We hereby direct the ld. AO to delete the penalty levied u/s. 272A(2)(k) of the Act in the peculiar facts and circumstances of the case. Accordingly, the grounds raised by the assessee are allowed.
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