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TMI Blog2015 (6) TMI 166X X X X Extracts X X X X X X X X Extracts X X X X ..... ore, 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 Rs. 6,46,300/-, Rs. 4,96,600/- and Rs. 3,47,400/-, which were restricted to Rs. 4,84,945/-, 3,73,264/- and Rs. 3,27,534/- respectively for all the above assessment years, equal to the amount of tax deducted at source in respect of each of the quarters. 4. The assessee challenged the penalty orders before the learned CIT (Appeals) and the learned CIT (Appeals) after considering the written submissions of the assessee dismissed all the appeals of the assessee. The findings of the learned CIT (Appeals) ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s 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 but still there are penal provisions to enforce the legal obligations. If there are no penal consequences for default, the question arises as to how else the law is to be enforced. It may also be mentioned that the information contained in TDS statements is utilized by the department in ensuring proper assessment of tax in the case of the persons from whose income tax has been deducted at source. Hence. while non-filing of statement by the deductor may not entail a loss to rev ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 in the case of ACIT Vs. Lok Prakashan Ltd., Ahmedabad and the order of the I.T.A.T., Mumbai Bench in the case of M/s Royal Metal Printers Pvt. Ltd. Vs. Addl.CIT (TDS) and the copies of the same are placed on record. 6. On the other hand, the learned D.R for the Revenue relied upon the orders of the authorities below. 7. On going through the penalty orders, we find that the Assessing Officer has mentioned the details of due date of filing of the TDS returns and the date of filing of the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... o 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 was not aware to comply with the provisions of section 200(3) of the Income Tax Act and it is claimed during the course of arguments that the assessee was not aware of the provisions of law and also relied upon the judgment of Hon'ble Supreme Court on the proposition that there is no presumption that every person knows the law. The explanation of the assessee is after thought and clearly false. When the assessee is able to comply with the provisions of sub-section (1) and (2) of section 200 of the I ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 the explanation of the assessee is accepted that there is no loss to the Revenue, no penalty would be imposed on any person and it would go against the intention of the Legislature and the relevant provisions would also go redundant. We may also note here that the assessee in the statement of facts filed with appeal stated that grievance letter was received from Shri Ashok Gulati by the departmental leging that the assessee had deducted tax at source but that was not reflected in the 26AS statement. It would, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d 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 show if he was not fit to resume the duties. No details of proper illness or diagnosis provided to the deponent have been mentioned in the certificate. No serial number on the Letter Head is provided to prove the genuineness of the Medical Certificate. In the absence of any detail in such certificate and further when no such certificate or affidavit were filed before the authorities below would clearly lead to the conclusion that it is an after thought story made up by the assessee to claim reasonable cause for failure t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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