TMI Blog2016 (5) TMI 1109X X X X Extracts X X X X X X X X Extracts X X X X ..... granted. In fact even when the appellant had appeared through a counsel, only an adjournment was sought and even thereafter no explanation was offered before the Assessing Authority. However, an explanation was offered before the Appellate Authority which was taken into consideration and the penalty amount was suitably reduced as the case of the appellant that a regular Principal assumed charge on 25 January 2010 was accepted and the penalty was imposed after that date. - Income Tax Appeal No. 135 of 2016 - - - Dated:- 16-5-2016 - Hon'ble Dilip Gupta And Hon'ble Ravindra Nath Kakkar, JJ. For the Appellant : Naveen Chandra Gupta For the Respondent : S. C. ORDER Raja Harpal Singh Inter College the Collage , Singramau in District Jaunpur has filed this appeal under section 260-A of the Income Tax Act, 1961 the act to assail the order dated 21 January 2016 passed by the Income Tax Appellate Tribunal, Allahabad Bench, Allahabad the tribunal by which the appeals preferred by the College against the orders of the Commissioner of Income Tax (Appeals) partly confirming the penalty levied under section 272-A(2)(k) read with section 200(3) of the Act have b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... appellant engaged an Advocate who appeared on 26 December 2012 but did not furnish any reasonable cause for not filing the e-TDS statements or any explanation for waiver of penalty. A prayer for adjournment was only made and the matter was adjourned for 7 January 2013. Even on that date no one appeared before the Authority nor any reply was submitted in the office. Subsequently, a letter dated 16 January 2013 was submitted by the appellant. This letter mentions that the regular Principal had joined the College on 25 January 2010 and was collecting the necessary papers and that there was no intention to violate any provision of law. It was also stated that one month's time may be given for filing the e-TDS statements. The appellant, however, did not furnish any explanation for the delay in filing the e-TDS statements and only submitted the e-TDS statements on 8 February 2013 and 9 February 2013. The Assessing Authority found that no reasonable or sufficient cause had been shown by the appellant for not filing the e-TDS statements within the time limit prescribed and as it was established that the deductor had violated the provisions of section 200(3) of the Act, the appellant w ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f administrative and compliance work; iii) Till the date of retirement of Pt. Moolchand Pandey, i.e. 28/06/2009, no proper posting was made through commission and again Sri Bhanu Pratap Singh, as lecturer of Biology was also no experience of administrative and compliance work; iv) And from 25/01/2010 onwards Dr Rama Kant Singh is being appointed as Principal of the College through the Service Commission. (All the relevant supporting papers are attached herewith for your kind reference) It is very important to mention here that on 18/12/2008, the Manager Sri Kunwar Sripal Singh was passed away suddenly and because of it, the administrative as well as financial decision/works were hampered totally. Since the payment was released by DIOS, the deduction and deposit of TDS was done well in time in Govt. A/c but the e-filing of TDS returns could not be done timely. Since 25/01/2010 onwards finally the Service Commission has appointed Dr. Rama Kant Singh as Principal and the compliance process for e-filing of TDS return form has been started. Since the matter pertained to 4 financial years, it took some time to recollect/arrange the data/records and finally on 08/ ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... enalty by calculating the same with effect from 1 April 2010 as the regular Principal had joined the College on 25 January 2010. Having found that no satisfactory explanation had been offered by the appellant for non-filing of the e-TDS statements after 1 April 2010, the Tribunal dismissed the appeals. Sri N.C. Gupta, learned counsel for the appellant has submitted that it cannot be said that opportunity was provided to the appellant to furnish an explanation since no reply was sent to the College in response to the application dated 16 January 2013 which had been submitted by the appellant before the Assessing Authority for granting a month's time to file the statement. It is his submission that for imposing penalty, adequate opportunity was required to be provided as is contemplated under section 272A(4) of the Act. Learned counsel also submitted that even though no explanation may have been furnished to the Assessing Authority for the delay in filing the e-TDS statements but sufficient explanation had been offered before the First Appellate Authority for not furnishing the e-TDS statements in time but as this explanation has not been considered in its correct perspective, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... elivered to the prescribed income-tax authority or the person authorised by such authority such statement in such form and verified in such manner and setting forth such particulars and within such time as may be prescribed. Provided that the person may also deliver to the prescribed authority a correction statement for rectification of any mistake or to add, delete or update the information furnished in the statement delivered under this sub-section in such form and verified in such manner as may be specified by the authority. Section 272A(2)(k) of the Act provides that if any person fails to deliver or cause to be delivered a copy of the statement within the time specified in section 200(3), then penalty of ₹ 100 shall be paid for every day during which the failure continues provided that the amount of penalty for failures in relation to a statement made under section 200(3) shall not exceed the amount of tax deductible or collectible as the case may be. Sub-section (4) of section 272A provides that no order under this section shall be passed by any income tax authority referred to in sub-section (3) unless the person on whom the penalty is proposed to be imposed ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he explanation basically was that prior to the joining of a regular Principal in the College on 25 January 2010, only officiating Principals had been working who did not have an idea that e-TDS statements were required to be filed. The Tribunal noticed that the Appellate Authority had accepted the explanation offered by the appellant and imposed penalty only from 1 April 2010 though the regular Principal had joined the College on 25 January 2010. The Tribunal, accordingly, dismissed the appeal having found that no satisfactory explanation has been furnished for non-filing of the e-TDS statements in time. The Assessing Authority has given reasons as to why it was necessary to file the e-TDS statements in time and they are as follows :- The most important objective of the TDS provisions is to extend the reach of Income Tax Department so as to make tax administration more effective and efficient and to reduce opportunities for tax evasion so as to bring equity in the system. To achieve this objective, person/s in each organization, who is responsible to make certain payments required to deduct tax at source on or before making such payment and furnish e-TDS quarterly statement ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... contended by learned counsel for the appellant that non-filing of the e-TDS statements had not resulted in loss to the revenue but the requirement of filing e-TDS statements in time cannot be overlooked. The Department cannot accurately process the returns on whose behalf tax has been deducted until information of such deduction is furnished by the deductor within the prescribed time and as emphasised by the Bombay High Court timely processing of returns is the bedrock of an efficient tax administration system . It is, therefore, necessary for the deductor to file e-TDS statements in time so as to enable the processing of the returns in time. The Assessing Authority has also emphasised this aspect in the order dated 22 April 2013. It has been stated that filing of e-TDS statements not only increases the reach of the department but also leads to creation of an audit trial that can be utilized as an effective tool against detection of tax evasion. It is for this reason that stringent action is required to be taken for non-compliance. In such circumstances, it cannot also be urged by learned counsel for the appellant that no penalty could have been imposed for non-filing of the e-TD ..... X X X X Extracts X X X X X X X X Extracts X X X X
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