New User   Login      
Tax Management India .com TMI - Tax Management India. Com
Extracts
Home List
← Previous Next →

2015 (6) TMI 166 - ITAT CHANDIGARH

2015 (6) TMI 166 - ITAT CHANDIGARH - TMI - Penalties under section 272A(2(k) - reasonable cause mising - Held that:- The assessee has miserably failed to prove if there was any reasonable cause for failure to comply with the provisions of law. In the absence of any cause to explain delay in filing of the TDS returns within the time prescribed in law, we do not find any error in the orders of the authorities below in levying and confirming the penalties against the assesse - Decided against asses .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

on 272A(2(k) of the Income Tax Act. 2. We have heard the learned representat ives of 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 .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

plies 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 restricted to ₹ 4,84,945/-, 3,73,264/- and ₹ 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 ch .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

on or after the 1st day of April, 2005 in accordance with the foregoing provisions of this Chapter or, as the case may be, any person being an employer referred to in subsection (1A) of section 192 shall, after paying the tax deducted to the credit of the Central Government within the prescribed time, prepare such statements for such period as may be prescribed and deliver or cause to be delivered to the prescribed income-tax authority or the person authorised by such authority such statement in .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

- 30th June- Due date of the financial year - 15th July of the financial year 2. Date of ending of the quarter - 30th September - Due date of the financial year - 15th October of the financial year 3. Date of ending of the quarter - 31st December - Due date of the financial year - 15th January of the financial year 4. Date of ending of the quarter - 31st March - Due date of the financial year - 15th May of the financial year immediately following the financial year in which deduction is made.&q .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ndred 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 ther .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

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 revenue in deductor's case, it may result in loss of revenue in the case of deductees and so the contention of the Ld. Counsel that in the absence of loss to .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

entirely distinguishable and cannot be applied to the instant case. 5.5 The Ld. Counsel has also contended that no material has brought on record by the Department to the effect that the appellant deliberately defied the provisions of law. This contention of the appellant does not hold water since the appellant has to prove that there was reasonable cause for the said failure for applicability of provisions of section 273B of the Act. The Assessing Officer is not supposed to bring on record any .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

al taken by the appellant in all the three appeals are dismissed. 6. In the result, all the three appeals are dismissed." 5. We have considered rival contentions and perused the material available on record. The learned counsel for assessee by referring 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 d .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

sa, 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. Lo .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

of TDS returns. In assessment year 2009-10 the delay in filing of returns in prescribed form for all the four quarters was of 6463 days, in assessment year 2010-11 similarly the delay in filing the prescribed returns for all the four quarters is of 4966 days and in assessment year 2011-12 the delay in filing the returns in prescribed form for all the four quarters is of 3474 days. Thus there is huge and abnormal delay in filing the TDS returns. The assessee claimed in the reply before the Asses .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

the foregoing provisions of this Chapter shall pay within the prescribed time, the sum so deducted to the credit of the Central Government or as the Board directs. (2). Any person being an employer, referred to in sub-section (1A) of section 192 shall pay, within the prescribed time, the tax to the credit of the Central Government or as the Board directs. (3) Any person deducting any sum on or after the 1st day of April, 2005 in accordance with the foregoing provisions of this Chapter or, as the .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

rescribed." 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 pro .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

come 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 wit .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

of the assessee cannot be accepted that the assessee was not aware of the provisions of law for filing the TDS returns within the prescribed time. It is also unbelievable that the assessee was not aware of sub-section (3) of section 200 of the Income Tax Act. The content ion of the assessee is, therefore, rejected. The learned counsel for assessee also relied upon the decision of the Hon'ble Supreme Court in the case of M/s Hindustan Steel Ltd. (supra), in which it was held that 'the pe .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

alment or for giving in accurate particulars while filing the return. The object behind the enactment of section 271(1)(c) read with the Explanations indicates that the section has been enacted to provide for a remedy for loss of revenue. The penalty under that provision is a civil liability. Wilful concealment is not an essential ingredient for attracting civil liability as is the case in the matter of prosecution under section 276C." 9. Therefore, the decision relied upon by the learned c .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

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 cons .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

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, therefore, proves that in case of non-filing of the TDS returns, the persons on whose behalf taxes have been deducted would also suffer for no fault of them because they would not get benefit of taxes at source. Therefore, in all the assessment years under appeals, large number of persons would have suffered .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

the parties and perused the material available on record. The assessee at the penalty stage submitted before the Assessing Officer that the delay in filing of the required returns was due to some unavoidable circumstances as their Accountant was having family problem and could not devote proper time. The assessee also claimed that the delay in filing the returns was not intentional. The Assessing Officer was, however, not satisfied with the reply of the assessee and levied penalties under the a .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

appeals of the assessee. The learned counsel for assessee filed the affidavit 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 .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

e 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 Medica .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ot devote proper time. However, no such family problem has been explained at all and the illness of the Accountant was never pleaded before the authorities below. Thus the assessee failed to explain if there was any reasonable cause for failure to comply with the provisions of law. During the course of arguments, the learned counsel for assessee stated that the Accountant was paid full salary during the assessment year under appeal would show that when he was paid full salary during the year und .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

 

 

 

 

 



|| Home || Acts and Rules || Notifications || Circulars || Schedules || Tariff || Forms || Case Laws || Manuals ||

|| About us || Contact us || Disclaimer || Terms of Use || Privacy Policy || TMI Database || Members || Site Map ||

© Taxmanagementindia.com [A unit of MS Knowledge Processing Pvt. Ltd.] All rights reserved.

Go to Mobile Version