9911796707
TMI Blog2014 (4) TMI 786X X X X Extracts X X X X X X X X Extracts X X X X ..... ny is engaged in real estate business of developing and sale of flats. A survey u/s 133A of the Act was conducted in case of the assessee on 10/03/2008 to verify TDS compliance. In course of survey, it was noticed that the assessee has failed to file quarterly returns in the prescribed form i.e. 24Q and 26Q for the FY 2004-05 within the stipulated time and there was a delay for all the four quarters. On the basis of survey report, the Assessing Officer was of the view that as per the provisions contained u/s 200(3) of the IT Act, read with Rule 31A of the IT rules, the assessee being a deductor is under statutory obligation to furnish quarterly statements with details of tax deducted at source to the prescribed authority in the prescribed f ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e, order was passed imposing penalty u/s 272A(2)(k) of the Act. Being aggrieved of the penalty order so passed, the assessee preferred appeal before the CIT(A). 4. The CIT(A) confirmed the penalty by holding as under: "6. The information on record is carefully examined. From the above table it is evident that the delay in filing of TDS returns is almost for more than 3 years for all the 4 quarters. This clearly indicates that the appellant is habitual late filer and has scant respect for statutory provisions of Income Tax Act. The reasons given by the appellant are completely incorrect. In fact, the due date to file TDS returns in 2005 perfectly coincides with unprecedente ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t since during that period there was a change in management, affairs of the company was in utter chaos, which resulted in delay in filing the returns. It was submitted by the learned AR that the assessee has not only paid the tax but has also paid interest in terms of section 201(1A) of the Act. The department is no way prejudiced as tax along with interest has been paid. It was submitted that since there is a reasonable cause in terms of section 273 of the Act, penalty should not have been imposed in case of the assessee. 6. The learned DR, on the other hand, submitted that since the assessee has not only defaulted in making payment of the tax deducted at source to the Government exchequer but has also not furnished quarterly returns with ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... recession were much after the relevant period. Therefore, the explanation furnished by the assessee cannot be taken at its face value and appears to be an after thought. In this context, allegation of the department that only because of the survey action, assessee came forward to file the returns assumes importance. So far as the contention of the learned AR that since the assessee has paid the interest u/s 201(1A) of the Act, it should be absolved from penal consequences, we are unable to accept it. If this argument is accepted, then, penal provisions would become redundant. In every case assessee would commit default by not paying TDS amount and absolve itself by paying TDS amounts subsequently along with interest u/s 201(1A) and come fo ..... X X X X Extracts X X X X X X X X Extracts X X X X
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