2016 (1) TMI 1288

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..... he learned CIT(A) has erred in law and on the facts of the case in confirming the action of learned AO in levying penalty without appreciating the fact that delay was caused in filing TDS statement due to acute shortage of funds coupled with inadequate staff and facilities. 3. The learned CIT(A) ought to have appreciated that the case of appellant falls within the ambit of Section 273B. 4. The learned CIT(A) ought to have appreciated that the appellant has already compensated the appellant for such delay by depositing TDS along with interest for such delayed period. 5. Both the lower authorities have passed the orders without properly appreciating the fact and that they further erred in grossly ignoring various submissions, explanatio .....

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..... considered view the ld. CIT(A) was justified in deleting the impugned penalty. He has given cogent reasons while deleting the penalty. There is no dispute about the fact that the appellant has deposited most of amount of the tax deducted at source under the provisions of the Act with the Government within stipulated time. However, where there is delay in such deposits, same has been deposited with interest. Further, the tax deducted at source for the relevant period was deposited by the appellant along with chargeable interest before the issue of show cause notice for the penalty under reference. The default for which penalty has been levied by the AO relates to late submission of Form No.24Q and 26Q of the IT Rules. The assessee's .....

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..... erest. Thus, it has compensated Govt. for late payment of TDS ensuring no loss to the revenue. In case there is no loss to the revenue, then penalty u/s 272A(2) cannot be levied." In case of Hindustan Steel Ltd. vs. State of Orisa (supra), it has been held as under: "In any case, late filing of TDS returns is merely a technical or venial breach which doesn't warrant levy of penalty u/s 272A(k)". In view of above facts, we are of the view that there was a reasonable cause for not filing the quarterly statement in time within the meaning of 273B of the Act, we, therefore, delete the penalty by allowing the appeals of the assessee." 4. Nothing contrary was brought to our knowledge on behalf of the Revenue. Facts being similar, so fol .....

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