TMI Blog2011 (4) TMI 1392X X X X Extracts X X X X X X X X Extracts X X X X ..... Act on the ground that the assessee did not file its quarterly TDS statements for the financial year 2007-08, which were mandatorily required to be filed in the prescribed form No.24Q 26Q as provided under sub-Section (3)of Section 200 of the Act read with Rule 31A of the Income-tax Rules, 1962. The statement for the first quarter was due to be filed by 15.7.2007, but it was filed on 18.3.209 and thus there was a delay of 612 days. Similarly, quarterly statement for the second quarter, which was due by 15.10.2007, was filed on 18.3.2009 implying thereby a delay of 520 days. The statement for the third quarter was due to be filed by 15.1.2008, but was filed on 18.3.2009. Thus, there was a delay of 428 days. Similarly, the statement for th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... vent the assessee to fulfill its statutory obligation and has imposed penalty of ₹ 2,12,100 under Section 272A(2)(k) of the Act. 3. On appeal, the ld.CIT(A) cancelled the penalty observing as under : 8. I have considered the facts of the case, grounds of appeal and the order of the Assessing Officer. The provisions relating to filing of quarterly returns have been brought into the statute w.e.f. 01.04.2005. However, considering the fact that the assessee is a State Govt. Organization, the Assessing Officer has not mentioned any default in deduction of tax or payment of tax deducted at source, and even though the penalty for not filing the quarterly statements leviable, however, considering the judicial pronouncements relied upo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ule 31A of the Incometax Rules, 1962 requiring the assessee to submit quarterly statements of deduction of tax under sub-section (3) of Section 200 of the Act within the time prescribed in the said Rule. Therefore, the penalty levied deserves to be cancelled. Even otherwise; the assessee did not derive any benefit whatsoever by not filing the quarterly TDS statements in time as the amount of TDS was duly deposited in the Government Treasury within the prescribed time. Such delay has not caused any loss to the Revenue. In our considered view, the ld.CIT(A) has correctly observed that no penalty is imposable as the default on the facts of the case, is treated as a technical default as the tax was deducted as well as paid in time and even in c ..... X X X X Extracts X X X X X X X X Extracts X X X X
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