TMI Blog2010 (1) TMI 1177X X X X Extracts X X X X X X X X Extracts X X X X ..... ment of law. Further, on the facts of the case that the assessee has paid the tax within the prescribed time, itself shows that ordinarily there would not be any benefit to the assessee for which it would deliberately delay the submission of the quarterly statements. Contention of the Revenue that ignorance of law cannot be an excuse is found to be unacceptable in view of the decision of Motilal Padampat Sugar Mills Co. Ltd[ 1978 (12) TMI 45 - SUPREME COURT] wherein it was held that there is no presumption in this country that every person knows the law and it would be contrary to common sense and reason if it were so. It was also stated that it is impossible to know all the statutory law, and not very possible to know all the common law . No error in the findings of CIT(A ) that the breach of provisions by the assessee by filing the quarterly statements with certain delay was a technical or venial breach of law only. Keeping in view the decision of Hindustan Steel Ltd. [ 1969 (8) TMI 31 - SUPREME COURT] and the decision of Harsiddh Construction Pvt. Ltd. [ 1999 (12) TMI 30 - GUJARAT HIGH COURT] we do not find any good reason to interfere with - Decided in favour of as ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d. AR has on the other hand pointed out that the appellant was under the bonafide belief that once deduction of tax was made and the tax was deposited with the Government, it was not required to file the Form No.24Q and 26Q in quarters of the relevant period. In the given circumstances, I do agree with the contentions of the Ld. AR that belief so entertained by the appellant constitute a reasonable cause within the meaning of sec. 273B of the Act. Sec. 273B of the Act lays down that the penalty shall not be imposed in respect of a default relating to the provisions mentioned therein if the person or the assessee concerned can show that there was a reasonable cause for default in question. Section 272(2)(k) falls within the ambit of sec. 273B of theAct. 5.5 Hon'ble Supreme Court in the case of Hindustan Steel Ltd. vs. State of Orissa 83 ITR 26 has held that: That in order to impose penalty for failure to carry out a statutory obligation is the result of quasi criminal proceedings and penalty will not ordinarily be imposed, unless the party obliged either acted deliberately in defiance of law or was guilty of conduct, contumacious or dishonest or acted in conscious disrega ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n that any person deducting any sum on or after the 1st day of April, 2005 in accordance with the provisions Chapter XVII shall after paying the tax deducted to the credit of the Central Government within the prescribed time shall prepare quarterly statement for the period ending on the 30th June, the 30th September, the 31st December and the 31st March in each Financial Year and deliver or cause to be delivered to the prescribed Income-tax authorities or the person authorised by such authorities such statement in such form and verified in such manner and setting forth such particulars and within such time as may be prescribed. She argued that the words used in the section is shall and not may and, therefore, it is mandatory for the assessee to comply with the provisions by filing the required particulars within the prescribed time. The assessee has failed to do what has been required of it by the statute. Therefore, the levy of penalty was justified. 5 She further argued that the order of penalty passed u/s 272A(2)(k) at page 1 para-3 states that the assessee had filed the quarterly TDS returns in Form No.24Q and 26Q late without giving any reason for the delay. She argued ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Income- tax (Appeals) was not justified in deleting the penalty levied on this ground. 10 The learned Departmental Representative further referred to para-5.6 at page-4 of the order of the Learned Commissioner of Income-tax (Appeals) and pointed out that the Learned Commissioner of Income-tax (Appeals) has stated that the assessee was under a bona fide belief that once deduction of tax was made and was deposited with the Central Government, it was not required to file the returns in Form Nos.24Q and 26Q in the quarters of the relevant period constitute a reasonable cause within the meaning of section 273B of the Act. She argued that this observation of the Learned Commissioner of Income-tax (Appeals) was without any basis as ignorance of law cannot be a defense in the case of levy of penalty for infraction of law. 11 The learned Departmental Representative further argued that the Learned Commissioner of Income-tax (Appeals) in para-5.7 at page-5 of the order has stated that levy of penalty is not mandatory in venial breach of law. She argued that the filing of the returns was mandatory on the part of the assessee which cannot be construed to be a venial breach of law. Therefo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... knowledge of the above requirement of law on the part of the assessee and as no loss to the revenue took place because of the aforesaid delay, the breach of duty on the part of the assessee was merely or venial breach and therefore in view of the provisions of section 273B of the Act he deleted the levy of penalty. We find that it is not in dispute that the quarterly statements were filed by the assessee though with certain delay and the taxes deducted by the assessee were paid to the credit of Central Government by the assessee within prescribed time. The aforesaid delay in filing the quarterly statements by the assessee was certainly a default on the part of the assessee which attracted penalty u/s 272A(2)(k) of the Act unless the assessee shows a reasonable cause within the meaning of section 273B of the Act. Thus, we are required to adjudicate whether on facts of the instant case the cause which has been shown by the assessee constitutes a reasonable cause u/s 273B of the Act or not. The finding of the Learned Commissioner of Income-tax (Appeals) is that the assessee was prevented from filing the quarterly statements within prescribed time because of the lack of knowledge of t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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