TMI Blog1995 (9) TMI 125X X X X Extracts X X X X X X X X Extracts X X X X ..... ,595 under section 272A(2)(c) of the Income-tax Act, 1961, as against a penalty of Rs. 27,000 imposed by the Assessing Officer. 3. It is stated in the penalty order that the person responsible to deduct tax at source, failed to comply with the provisions of section 206 of the Income-tax Act, 1961, inasmuch as no return was filed in Form No. 26A on or before 30-6-1991. Financial year under consideration was 1990-91. A notice was, therefore, issued to the assessee to show cause why penalty should not be imposed under section 272A(2)(c) of the Act. It was submitted, in reply, that although no return was filed in Form No. 26A under section 206 of the Act, tax was duly deducted at source and credited to the Central Government. It was further s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... laying down that the amount of penalty for failure in relation to returns under section 206 shall not exceed the amount of tax deductible. The CIT(A) has apparently reduced the quantum by applying this proviso, on the basis that the penalty order in question was passed on 28-4-1992. We are not going into the question of justification for reduction in quantum, since no appeal has been filed by the Department before us. The only question for consideration is whether the penalty should be deleted in its entirety. 6. The relevant facts brought to our notice are that tax was actually deducted at source, amounting to Rs. 5,595 which was the tax deductible. On the basis of this fact it has been submitted that the omission to file Form No. 26A u ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... a delay in filing the return of income and it was held that the Tribunal would be justified in deleting the penalty on facts and circumstances showing mere minor or technical breach of law. 9. We have now to examine whether in the present case there was mere technical or minor breach of law or whether the assessee acted deliberately in definance of law or was guilty of conduct contumacious or dishonest, or acted in conscious disregard of its obligation. We have also to notice an amendment to the law by the introduction of section 273B of the Act w.e.f. 10-9-1986 shifting the onus on the assessee to prove that there was reasonable cause for the said failure. This amendment could not have been considered in the above judgment of the Suprem ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ns of the Indian Penal Code should be incorporated in the Income-tax law itself so that the Income-tax Act is made comprehensive enough to deal with such offences. . . In this connection, we also considered the provisions of section 276 of the Income-tax Act, 1961, which prescribes only monetary fines for the offences specified therein. We see no reason why the Department itself should not be empowered to impose penalties in such cases. We recommend that the present section 276 of the Income-tax Act, 1961, may be deleted from Chapter XXII dealing with 'Offences and Prosecutions' and may be incorporated with suitable amendments in Chapter XXI of the Income-tax Act, 1961, dealing with 'Penalties imposable'. We may mention that a provision e ..... X X X X Extracts X X X X X X X X Extracts X X X X
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