TMI Blog2015 (6) TMI 166X X X X Extracts X X X X X X X X Extracts X X X X ..... both the parties and perused the material available on record. The issue is same in all the appeals. Therefore, all the appeals are decided through this common consolidated order. The assessee during the pendency of appeals also filed Stay Applications in all the years, which were also fixed for hearing alongwith the appeals. The learned counsel for assessee stated that since the appeals are heard and have to be decided, therefore, there is no need to decide the Stay Applications on merits. 3. Briefly, the facts of the case are that the Assessing Officer noticed that the person responsible (hereinafter referred to as 'PR') had filed quarterly TDS returns in Form No.26Q after the respective due dates in respect of all the four quarters for assessment years 2009-10, 2010-11 and 2011-12 (financial years 2008-09, 2009-10 and 2010-11). In response to the show cause notices, the assessee had filed replies in respect of all the three years but the Assessing Officer was not satisfied with the explanation of the assessee and worked out the amount of penalties under section 272A(2(k) of the Income Tax Act at ₹ 6,46,300/-, ₹ 4,96,600/- and ₹ 3,47,400/-, which were ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... dates as prescribed by the rule. 5.3 The provision under which the impugned penalty has been imposed namely Section 272A(2)(k) in terms states that if any person fails to deliver or cause to be delivered a copy of the statement under sub-section (3)of Section 200 within the specified time, he shall pay by way of penalty a sum of one hundred rupees for every day, during which the default continues. A plain reading of the provision clearly shows that the question of direct loss of revenue can never occur if the specified statement is not filed within the stipulated time. The legislature has to be attributed that much intelligence that the penalty for delay in submission of the statement was provided even when there could have been no loss of revenue under any circumstance. Therefore, in such a situation to plead that since there is no loss to revenue, no penalty should be imposed would go not only against the intention of the legislature but would render the clear provisions of law otiose. It has to be borne in mind that the State compels the subjects to obey its laws at the pain of penalty for its violation. Every violation of law does not necessarily entail loss to the exchequer ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eferring to the show cause notice issued by the Assessing Officer seeking explanation of the assessee with regard to levy of penalty, also refer red to the reply filed by the assessee (PB-14), in which the assessee explained that the TDS amount was deducted and paid to the Government Department and whenever it came to the not ice of the assessee that the TDS returns have to be filed, the prescribed returns have been filed. The learned counsel for assessee, therefore, submitted that there is no loss to the Revenue and it is a reasonable cause for failure to comply with the provisions of law. The learned counsel for assessee relied upon the decision of the Hon'ble Supreme Court in the case of M/s Hindustan Steel Ltd. Vs. The State of Orissa, 83 ITR 26 in which it was held that the penalty should not be imposed unless the party acted deliberately in defiance of law . He has also relied upon the decision of Hon'ble Supreme Court in the case of Motilal Padampat Sugar Mills Co. Ltd. Vs. State of Uttar Pradesh Others, 118 ITR 326, in which it was held that there is no presumption that every person knows law . He has also relied upon the order of the I.T.A.T., Ahmedabad Bench ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... by such authority such statement in such form and verified in such manner and setting forth such particulars and within such time as may be prescribed. 8. Section 200 is inserted in Chapter-XVII of the Income Tax Act, which deals with collection and recovery of tax and various provisions are provided for deduction of the tax at source. Section 200(1) of the Income Tax Act provides that 'any person deducting any sum in accordance with Chapter-XVII shall pay within the prescribed time, the sum so deducted to the Central Government or as the Board directs'. Sub-section (2) of section 200 of the Income Tax Act similarly provides that 'any person being employer, refer red to in sub-section (1A) of section 192 of the Income Tax Act shall pay, within the prescribed time, the tax to the credit of the Central Government or as the Board directs'. The assessee (PR) in the reply before the Assessing Officer has specifically stated that TDS for all the above years have been deducted and paid to the Government. Therefore, the assessee says that he has complied with the provisions of sect ion 200(1) and (2) of the Income Tax Act. The assessee (PR) has, however, says that he w ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n relied upon by the learned counsel for assessee would not support the case of the assessee. 10. Sect ion 273B of the Income Tax Act provides that no penalty shall be imposable on the person or assessee, as the case may be, for any failure refer red to in the said provisions if he proves that there was reasonable cause for the said failure . This is the only except ion provided in favour of the assessee under the Act. The assessee, however, in the present case has merely contended that since the assessee was not aware of the provisions of law, therefore, no return of TDS was filed. It could not be treated as any cause what to say of reasonable cause in favour of the assessee. In case, the explanation of the assessee is accepted, then it would give an open licence to all the concerned persons to flout the provisions of Income Tax laws in the garb of denying the relevant provisions of law. Therefore, there is no reasonable cause existed in favour of the assessee. 11. It may also be noted here that on consideration the above provisions, it is clear that the question of direct loss of revenue can never occur if the specified statement is not filed within the prescribed time. If ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... idavit of Shri Vijay Kumar Dogra, who claimed to be looking after the ac counts department of the assessee. In the affidavit, it was stated that he was having ailing father Shri Nanak Chand, so went into depression after the death of his mother on 28.1.2008. Further due to health problem in financial year 2011-12 he could not attend his official duties regularly. Therefore, there was delay in filing the TCS/TDS returns. One Certificate from Gopal Hospital is filed. The learned counsel for assessee, therefore, stated that it was a reasonable cause for failure to comply with the provisions of law. 5. On the other hand, the learned D.R for the Revenue strongly relied upon the orders of the authorities below. 6. The affidavit is filed for the first time before the Tribunal and no affidavit was filed before the authorities below. The facts stated in the affidavit were not pleaded before the authorities below as well. The mother of the deponent Shri Vijay Kumar Dogradied in January, 2008, which has no connection with the assessment year 2012-13. It was further claimed in the affidavit that he was having health problems in assessment year under appeal but the certificate do not ..... X X X X Extracts X X X X X X X X Extracts X X X X
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