TMI Blog2018 (7) TMI 117X X X X Extracts X X X X X X X X Extracts X X X X ..... ner without bringing the facts on record to establish that the appellant committed the default without a reasonable cause. - Decided in favour of assessee. - I.T.A. No. 2736/Ahd/2015 - - - Dated:- 28-6-2018 - SHRI WASEEM AHMED, ACCOUNTANT MEMBER And SHRI MAHAVIR PRASAD, JUDICIAL MEMBER For The Appellant : Shri Tushar Hemani, A.R. For The Respondent : Shri Mudit Nagpal, Sr. D.R. ORDER PER WASEEM AHMED, ACCOUNTANT MEMBER: The captioned appeal has been filed at the instance of the assessee against the appellate order of the Commissioner of Income Tax(Appeals)-8, Ahmedabad [CIT(A) in short] vide appeal no.CIT(A)-8/259/14-15 dated 21/07/2015 arising in the order passed under s.272A(2)(k) of the Income Tax Act ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nciples of Natural Justice and therefore deserves to be quashed. The appellant craves leave to add, amend, alter, edit, delete, modify or change all or any of the grounds of appeal at the time of or before the hearing of the appeal. 3. The assessee in its all grounds of appeal has challenged the imposition of the penalty levied u/s 272A(2)(k) of the Act for ₹ 1,72,000/- only. 4. Briefly stated facts are that the AO during the assessment proceedings observed that the Assessee failed to furnish its TDS return in Form No. 24Q 26Q for all the quarters of the year under consideration within the specified time. Accordingly, the assessee was show-caused vide letter dated 21-01-2014 for the imposition of penalty u/s 272A(2)(k ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ge of staff and facilities. Despite full opportunity the AR of the appellant could not give any other cause for delay in filing the statements. The AR has emphasized on the point that the assessee has deducted TDS but could not file Statement on time because the location of the factory is away from Ahmedabad city and faces shortage of staff. In his submission he has quoted few judicial pronouncements which are in favour of those deductors/assessees who have bonafide reasonable cause for late compliance of the legal reasonability. In the present case, the AR has no such circumstance or reasonable cause so that the ; pronouncement can be applied 'to him. The location of the factory is in Vatva, which is very close to Ahmedabad rathe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... is not acceptable neither the judicial decisions mentioned are applicable to the circumstances of the appellant. I have no reason to delete the penalty for filing the various TDS statements late by as much as 354 days and 1722 days in total. Here it is important to note that the current appeal is also filed late by 40 days blame of which has been put on the accountant. This also shows that the appellant company is not conscious of following the deadlines decided by the law. The appellant has tried unnecessarily to defend his default by giving very frivolous reasons which do not qualify to be reasonable cause u/s.273B. In view of all the circumstances the AO has rightly imposed the penalty u/s. 272A(2)(k). I have no hesitation in confirming ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... son for late payment of taxes was financial crunch in the business of the assessee which in our view constitute a reasonable cause for late filing the quarterly statements in Form Nos.24Q 26Q as this statement can only be filed after the payments of taxes. Since, full amount of TDS along with interest has been paid by the assessee and therefore, no loss is caused to the Revenue and the late filing of quarterly statement is technical and venial breach of provision of the Act. In case of the Oriental Insurance Co. Ltd. (supra), it has been held as under: 5. We have heard the rival parties and perused the material on record. In our considered view the ld. CIT(A) was justified in deleting the impugned penalty. He has given cogent rea ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... see's case. We find no infirmity in the order of ld. CIT(A) and uphold the same. The ground raised by the Revenue is dismissed. In case of CIT(A) Eli Lilly And Co. (India) P. Ltd. (supra), it has been held as under: S.273B provides that in case reasonable cause is shown, penalty u/s 272A(2) must not be levied. Appellant couldn't file TDS returns in time since TDS was deposited late on account of acute shortage of funds. Since the same is a reasonable cause, penalty cannot be levied. In case of CIT vs. Harsiddh Construction Pvt. Ltd.(supra), it has been held as under: Further, appellant has deposited TDS along with interest. Thus, it has compensated Govt. for late payment of TDS ensuring no loss to the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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