TMI Blog2011 (5) TMI 831X X X X Extracts X X X X X X X X Extracts X X X X ..... revenue loss and is a mere technical default. Thus, when there is a technical or venial breach of the provisions of the Act or where the breach flows from a bona fide belief that the offender is not liable to act in the manner prescribed by the statute, no justification in imposing the penalty u/s 272A(2)(k) - Decided in favor of assessee. - IT Appeal No. 285 (Luck.) of 2011 - - - Dated:- 31-5-2011 - H.L. Karwa, J. R.N. Shukla for the Appellant. P.K. Bajaj for the Respondent. ORDER 1. This appeal filed by the assessee is directed against the order of the learned CIT(A)-III, Lucknow, dt. 1st Oct., 2010 in confirming the penalty of Rs. 46,700 levied under s. 272A(2)(k) of the IT Act, 1961 (in short "the Act") for the asstt. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... filed late. He, therefore, issued a show-cause notice under s. 272A(2)(k) of the Act, dt. 13th July, 2009 requiring the assessee to explain as to why penalty under s. 272A(2)(k) should not be imposed for the failure to deliver the copy of statement within the time specified under sub-s. (3) of s. 200 of the IT Act, 1961. After receiving the reply of the assessee, the Addl. CIT (TDS) imposed a penalty under s. 272A(2)(k) of Rs. 100 per day for every day during which the failure continued i.e. for the total period of delay of 467 days that works out to Rs. 46,700. 3. On appeal, the learned CIT(A) confirmed the impugned penalty for the reasons stated in para 2.1 of the order. 4. I have heard the rival submissions and have also perused the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e four quarters are structurally valid PAN. This threshold limit for PAN quoting has been further enhanced to 85 per cent for Form No. 24Q and 95 per cent for Form No. 26Q without which the TDS return will not be accepted. Shri R.N. Shukla, learned counsel for the assessee submitted that the assessee had no alternative but to collect the PAN of the deductee by individually contacting them to comply the statutory requirement because even the 40 per cent PANs of the deductees were not available with the assessee. Collection of PAN from the deductees was not an organizational problem because the assessee has no statutory power to collect the PAN, except to request the individual deductee to supply the PAN. However, the bank is authorized under ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ve any revenue loss and is a mere technical default. Even otherwise, in my opinion, there was only a technical and venial breach of the provisions contained in r. 31A of the IT Rules, 1962 requiring the assessee to submit quarterly statements of deduction of tax under sub-s. (3) of s. 2,00 of the Act within the time prescribed in the said rule. In my opinion, the assessee did not derive any benefit whatsoever by not filing the quarterly TDS statements in time as the amount of TDS was duly deposited in the Government treasury within the prescribed time. Such delay has not caused any loss to the Revenue. Considering the relevant facts of the present case, the default committed by the assessee can be treated as a technical default as the tax w ..... X X X X Extracts X X X X X X X X Extracts X X X X
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