TMI Blog2018 (9) TMI 1614X X X X Extracts X X X X X X X X Extracts X X X X ..... the assessee is in the first year of business operations, ignorance of provisions of law can be held to be reasonable cause for non-compliance of the provisions of law. Further the columns of Form 26Q also contains columns requiring the details as to the date of the deposit of the TDS Amount in the Govt. Account. Therefore, when there is a delay in remittance of the TDS Amount in the Govt. Account, this would constitute a reasonable cause for not filing the prescribed returns within the due date. The statute also prescribes different penal provisions for delay in remitting the TDS amount to the Govt account. The explanation tendered by the assessee cannot be termed as unreasonable or unplausible. Therefore we are of the considered opini ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... levied is excessive and liable to be reduced substantially. 5. For the above and other grounds that may be urged at the time of hearing of the appeal, your appellant humbly prays that the appeal may be allowed and Justice rendered and the appellant may be awarded costs in prosecuting the appeal and also order for the refund of the institution fees as part of the costs. 3. Briefly the facts of the case are that the appellant is a partnership firm and engaged in the business of dealing in ready garments / textiles. During the F.Y. 2011-12, it was under obligation to deduct tax at source under the provisions of Sec. 194I on the payment of rent. The appellant company had deducted TDS on rent payment and remitted the TDS amount to the Govt ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r sub-section (2) Of section 272A is imposable. However, in all the above decisions, it has been held that if the appellant proves that there was reasonable cause for not filing the quarteriy statement in time. the penalty cannot be imposed in terms of section 274(2) and 273B Of the Act. IN the light of the above judicial pronouncements, on examination of order passed by the Addl. CIT and submission made in the statement of facts, it is clear that the appellant has taken contradictory stand to justify the reasonable cause in terms of section 273B of the Act. In the statement of facts it is submitted that the appellant could not file the quarterly statements within time due to ignorance and due to the fact that it did not have enough qualif ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... itted that the delay in filing the prescribed quarterly returns is caused on account of (i) delayed remittance of the tax deducted amount to Govt. Account and (ii) the appellant is ignorant provisions of law on the subject as it is newly set up. According to the Ld. Counsel it constitutes a reasonable cause for not submitting the prescribed quarterly returns in time. In support of this, he placed reliance on the decision of co-ordinate bench of this Tribunal in the case of HTSL Community Service Trust Vs. JDIT (Exemptions) 20 taxmann.com 4 and Hon ble Allahabad High Court in the case of Budhan Singh Sons Vs. CIT 142 ITR 180 (All). 5. On the other hand, the learned Departmental Representative submitted that levy of penalty u/s. 272A is ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d provisions, if it is proved that a reasonable cause is established for the said failure. Therefore the statute provides that if there is reasonable cause for the failure, the penalty under the provisions of sub-section (2) of Section 272A of the Act cannot be levied. Then the issue that comes up for consideration is whether the explanation tendered by the appellant in support of delay in submission of quarterly returns can be considered to be plausible. The explanation that the delay was caused on account of delayed remittance of tax deducted amount to the Govt. Account and the ignorance of the provisions of law on the issue as the company was newly set up can be considered to be reasonable having regard to the ratio laid down by the Hon ..... X X X X Extracts X X X X X X X X Extracts X X X X
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