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2015 (12) TMI 689

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..... at in respect of some of the quarters TDS amount was remitted to the Government account beyond the prescribed date. As could be seen, in response to the show cause notice, the assessee has submitted its Explanation by stating that the deductee is the director of the company to whom rent / professional fee was paid and salary was paid to the family members of the company, hence, there is no willful intention to delay or deprive any deductee of the TDS credit. However, before the first appellate authority, the assessee has taken a completely different stand by stating that due to oversight of the staff, TDS statement could not be filed. When the learned counsel was specifically asked by the Bench why this stand taken before the first appe .....

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..... 74/Mum./2014 - - - Dated:- 6-11-2015 - Saktijit Dey, JM And Ashwani Taneja, AM For the Appellant : Shri M P Chhajed Shri Piyush Chhajed For the Respondent : Shri Harshad Vengurlekar ORDER Per Saktijit Dey, JM This is an appeal filed by the assessee against the order dated 17th February 2014, of learned Commissioner (Appeals) 14, Mumbai, for the assessment year 2010 11. 2. The assessee is basically aggrieved with the confirmation of penalty of ₹ 3 lakh, imposed under section 272A(2)(k) of the Income Tax Act, 1961 (for short the Act ). 3. Briefly stated the facts are, the assessee is a Private Limited Company. The Assessing Officer, on examination of records pertaining to the assessee, found that assesse .....

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..... nced with the explanation of the assessee. He observed that the provisions contained under section 203 r/w rule 31A require strict compliance. Therefore, the plea of lack of staff, ignorance of TDS provisions would not constitute reasonable cause. Accordingly, he confirmed levy of penalty. 5. The learned counsel for the assessee submitted before us, though, there is a delay in filing the TDS statements for different quarters within the prescribed time but the delay was not due to deliberate latches or negligence of the assessee but on account of oversight by the concerned staff who was in charge of filing TDS statement. The learned counsel submitted even though there is delay in filing TDS statement but they were filed much before the is .....

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..... table. For this proposition, he relied upon the following decisions: i) HTSL Community Service Trust v/s JDIT (E), [2012] 52 SOT 144 (Bom.) (UR); ii) CIT v/s General Engineering Works, [2009] 7. We have considered the submissions of the parties and perused the material available on record. Undisputedly, it is a fact on record that there is a delay in filing TDS statements in respect of all the four quarters as far as Form no.24Q is concerned and as far as statements in Form no.26Q is concerned, there is a delay in filing the TDS statement in respect of quarter 2, 3 and 4. On a perusal of the details of filing of TDS statement, it is seen that the delay is substantial ranging from almost one year to about two years. It is also .....

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..... ity. Therefore, as it appears, the assessee has taken a completely new stand before the first appellate authority which is not available before the Assessing Officer. Moreover, the plea regarding oversight by the staff is very general in nature, hence, cannot be accepted. Neither the assessee has identified the concerned employee nor furnished any affidavit of the employee admitting such fact. Further, considering the period of delay, the plea of oversight by staff is not acceptable. Though, we accept the fact that imposition of penalty under section 272A(2)(k) is not mandatory as the provisions of section 273B is also applicable in case of imposition of penalty under section 272A(2)(k), but, at the same time, the assessee has to show reaso .....

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