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TMI Blog2014 (9) TMI 759X X X X Extracts X X X X X X X X Extracts X X X X ..... roposing the following question, stated to be a substantial question of law. "Whether the ITAT has substantially erred in law and on facts by deleting the penalty order passed under Section 272A (2)(g) of the Act of Rs. 17,95,800/- ?" 2. The assessment years are 199394 are 199495. In these cases, penalty orders under section 272A[2](g) of the Act came to be made by the Assessing Officer for late issuance of TDS Certificate and he raised demands of Rs. 17,95,800/and Rs. 49,09,700/respectively. The assessee carried the matter in appeal before the Commissioner of Incometax [Appeals] XXI, Ahmedabad, who allowed the appeals relying on the decision of the Supreme Court in case of Hindustan Steel Limited v. State of Orissa, 83 ITR 26, as well as ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ificates and that none of the contractors/deposit holders had raised any grievance on account of late receipt of TDS certificates. Keeping in view the above facts, the Commissioner (Appeals) found that the default was merely technical or venial in nature and therefore, no penalty ought to have been levied. Finding support from the observations of the Supreme Court in the case of Hindustan Steel Limited v. State of Orissa [supra], the Commissioner (Appeals) allowed the appeals and setaside the orders of penalty. 5. As can be seen from the impugned order, the Tribunal was of the opinion that the default in question had been committed by the assessee under a bona fide belief that the certificates in question were required to be issued after t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... financial year. The Tribunal, accordingly, found that in view of frequent amendments in rule 31 of the Incometax Rules, the assessee being a deductor was under a bona fide belief that the said provisions have been followed for the year under consideration. It is in the above backdrop that the Tribunal has upheld the order of the Commissioner (Appeals) deleting the penalty imposed by the Assessing Officer. 7. In the aforesaid factual background it may be germane to refer to the provisions of section 273B of the Act which provides that notwithstanding anything contained in the provisions referred to therein (which include section 272A of the Act), no penalty shall be imposable on the person or the assessee, as the case may be, for any failu ..... X X X X Extracts X X X X X X X X Extracts X X X X
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