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2015 (9) TMI 180 - ITAT HYDERABAD

2015 (9) TMI 180 - ITAT HYDERABAD - TMI - Penalty under section 272A(2)(k) - failure on the part of the assessees to file the quarterly returns of TDS in Form 24Q and 26Q for the year under consideration - CIT(A) deleted the penalty - Held that:- Assessee has not furnished the relevant details and documents to support and substantiate the case of the assessees that the delay on the part of the concerned deductees in furnishing details resulted into the delay in filing the relevant TDS returns by .....

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e matter back to the A.O. for this purpose. Thus consider it fair and proper and in the interest of justice to accept this contention of the Ld. Counsel for the assessee and since the learned D.R. has also not raised any objection in this regard, set aside the impugned order of the Ld. CIT(A) and restore the matter to the file of the A.O. with a direction to decide the issue relating to imposition of penalty under section 272A(2)(k) afresh, after giving the assessees proper and sufficient opport .....

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osed by the A.O. under section 272A(2)(k) in the case of all the six assessees. 2. The assessees in the present case are the Head Office and Zonal Offices of the Greater Hyderabad Municipal Corporation (in short GHMC ). As noticed by the A.O., there was a failure on the part of the assessees to file the quarterly returns of TDS in Form 24Q and 26Q for the year under consideration within the stipulated time as required by sub-section (3) of section 200 read with Rule 31A(2) of the I.T. Rules, 196 .....

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ceiving information from one or the other Circle. c) That GHMC was busy in attending to several other Government programs like pension to old age people, submission of reports to Government etc., d) That shortage of manpower is one of the main reasons for delay in filing TDS returns. e) That GHMC, being a local body, being a Government organization, does not have any malafide intention in late filing of TDS returns. As such the tax was deducted and paid to Government account. There is no revenue .....

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o pay penalties under section 272A(2)(k) of the Act. Accordingly, penalties under section 272A(2)(k) were imposed by the A.O. on all the six assessees under section 272A(2)(k) as under : GHMC (HO) F.Y. 2010-2011 Total Penalty (in Rs.) Form 26Q 24,100 Form 24Q 3,94,100 Total 4,18,200 GHMC (East Zone) F.Y.2010-11 Total Penalty (in Rs.) Form 26Q 68,000 Form 24Q 3,43,900 Total 4,11,900 GHMC (Central Zone) F.Y. 2010-2011 Total Penalty (in Rs.) Form 26Q 47,900 Form 24Q 4,35,200 Total 4,83,100 GHMC (No .....

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he Ld. CIT(A), the following submissions were made on behalf of the assessees in support of their cases that the penalties imposed by the A.O. under section 272A(2)(k) were not sustainable. (a) The assessee was not supported by the competent staff having the required expertise and knowledge of filing the online Quarterly eTDS Returns. (b) The assessee could not get the PAN details of the deductees in spite of all its efforts. (c) The delay caused in filing of the e- TDS Returns was purely beyond .....

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ments in time, and wherein the appellant who is' a Local body (Public Office) had discharged its obligation by deducting tax at source and deposited it within the Central Govt. Exchequer. 3. After considering the submissions made on behalf of the assessees and keeping in view the various judicial pronouncements cited on behalf of the assessees, the Ld. CIT(A) held that all the assessees being Government organization, there was no malafide intention in filing TDS returns belatedly. He also he .....

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. CIT(A). Aggrieved by the order of the Ld. CIT(A), the Revenue has preferred these appeals before the Tribunal. 4. The learned D.R. contended that there was no reasonable cause established by the assessees for the delay on their part in filing the relevant TDS returns. He contended that this vital aspect however was completely overlooked by the Ld. CIT(A) and the penalties imposed by the A.O. under section 272A(2)(k) were cancelled by him on the ground that the assessees having deducted and pai .....

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A.O. under section 272A(2)(k) in case of all the six assessees thus is not well founded and the same is liable to set aside. 5. The Ld. Counsel for the assessee, on the other hand, strongly supported the impugned order of the Ld. CIT(A) cancelling the penalties imposed by the A.O. under section 272A(2)(k) in case of all the six assessees. Besides relying strongly on the basis given by the Ld. CIT(A) in her impugned order for cancelling the penalties, he also raised a two fold contention. Firstl .....

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by the assessees before the A.O. as well as before the Ld. CIT(A) by pointing out that there was a delay on the part of the deductees in furnishing their PAN details which resulted in the delay in filing the TDS returns by the assessees. 6. I have considered the rival contentions and also perused the relevant material on record. As rightly contended by the learned D.R., the requirement of filing the TDS returns as per the provisions of sub-section (3) of section 200 itself is technical in the se .....

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e impugned order of the Ld. CIT(A) cancelling the penalties imposed by the A.O. under section 272A(2)(k) by contending that such penalties cannot be imposed on or after 1st day of July, 2012 as per the second proviso to section 272A(2) inserted in the statute by the Finance Act, 2012 w.e.f. 01.07.2012. The said proviso reads as under : Provided further that no penalty shall be levied under this section for the failure referred to in clause (k), if such failure relates to a statement referred to .....

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as to be delivered or caused to be delivered for tax deducted at source or tax collected at source, as the case may be, on or after the 1st day of July, 2012. In the present cases, the relevant TDS returns were to be delivered or caused to be delivered by the assessees before the 1st day of July, 2012 and this being the undisputed position, I am of the view that the second proviso to section 272A(2) is not applicable in the present cases. The reliance of the Ld. Counsel for the assessee on the s .....

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