TMI Blog2017 (3) TMI 1735X X X X Extracts X X X X X X X X Extracts X X X X ..... force in the argument of the ld AR that the TDS returns could be electronically filed only after remittance of the requisite tax and interest thereon. Since the assessee had remitted the TDS portion itself belatedly by requesting the sister concern to make payment thereon and by mobilizing its own resources , it had eventually led to the belated filing of TDS returns. Hence this itself would, in our considered opinion, constitute reasonable cause u/s 273B of th Act. Hence assessee should not be invited with penalty for mere technical venial breach - decided in favour of assessee - I.T.A No.666/Kol/2014 - - - Dated:- 10-3-2017 - Shri M. Balaganesh, AM Shri S. S. Viswanethra Ravi, JM For the Appellant : Shri Manoj Kr. Tiwari, AR ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ogether on 15.3.2011 as assessee was waiting for remittance of TDS thereon. Regarding Form No. 24Q, the assessee stated that since tax had neither been deducted nor had been paid for the Quarters 1 2 of the financial year 2009-10, the assessee was under no obligation to submit TDS returns for the above quarters. Payment of TDS for Q 3 was made only on 5.2.2010 and 30.4.2010 and that of Q 4 was made only on 9.7.2010 , 4.8.2010 and 16.9.2010 because of precarious financial condition. Returns for Q 3 and Q 4 were filed on 24.11.2010 as assessee was waiting for remittance of TDS thereon. The ld AR also stated that the penalty in any case cannot exceed the tax payable thereon which is clear from the statute and hence even assuming without conc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t case, the assessee s staff were not equipped to perform the said work and efficient staff could not be retained by the assessee due to delayed payments of salary resulting from paucity of funds. The non-availability of adequate funds with the assessee leading to delayed remittance of TDS which eventually lead to delayed filing of returns constitute reasonable cause in terms of section 273B of the Act and hence penalty u/s 272A(2)(k) should not be levied in the instant case. He argued that the breach committed by the assessee by delayed filing of TDS returns in only venial in nature and there is no loss to the exchequer. Hence no penalty should be levied in respect of violation of procedural law. In support of his various propositions, he ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... as held that :- 5. ----------------------------- Late filing of TDS returns is a technical default. One should not be penalized for technical default. This view has been taken by various benches of tribunal and high courts. The Tribunal, Lucknow Bench, in Punjab National Bank v/s ACIT, [2011] 140 TTJ 622 ; 16 taxmann.com 318 (Lucknow) , held that non-filing of quarterly statements does not involve any revenue loss and is a mere technical default. Even otherwise, there was only a technical and venial breach of the provision contained in Rule 31A of the I.T. Rules, 1962 , requiring the assessee to submit quarterly statements of deduction of tax under section 200(3) within the time prescribed. Such delay had not caused any loss to the Re ..... X X X X Extracts X X X X X X X X Extracts X X X X
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