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2021 (12) TMI 446 - ITAT MUMBAIPenalty u/s 272A(2)(k) - assessee did not file its quarterly TDS returns within the prescribed time limit and there was a delay in filing quarterly statement of TDS u/s 200(3) as provided under Rule 31A of the Income Tax Rules - Reasonable cause of delay - As submitted Assessee paid the TDS payable subsequent to the survey conducted by the Department. The assessee complied with the directions of the Department but failed to file the relevant TDS quarterly returns due to non-availability of party wise details - HELD THAT:- The imposition of penalty u/s 272A falls u/s 273B, as per which no penalty shall be imposable for any failure if the assessee proves that there was reasonable cause for the said failure. In the given case, the assessee did not assess the liability under TDS provisions and subsequent to the survey, he blindly followed the instructions of the officers and remitted the liability in cash through SBI without taking any details of determination of liability. Subsequently, the assessee could not comply with the filing of quarterly returns and made to pay the same amount again. The above situation clearly proves the reasonable cause. Further, the Ld. CIT(A) observed that in view of malafide intention on the part of the appellant as per the facts mentioned in the preceding paragraphs, appellant does not deserve any mercy. We failed to understand this observation when the assessee had followed the instruction of the officer by remitting the TDS dues immediately and also paid the same amount twice and also demonstrated the intricacies in collecting information from Department as well as from suppliers of Karnataka area. In our view, the assessee has proper reasonable cause in this issue of failures to comply in filing the quarterly returns. Therefore, we direct the AO to delete the penalty imposed u/s 272(2)(k) of the Act. - Decided in favour of assessee.
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