TMI Blog2019 (5) TMI 282X X X X Extracts X X X X X X X X Extracts X X X X ..... he financial crisis that it had undergone. The development project was also dropped because of financial crisis and liquidity crunch. There is also default on the part of the assessee to adhere to the one time settlement of its secured loan outstanding. All these facts indicate that there was some problem going on in the financial affairs of the assessee company. Under these circumstances, we are of the considered opinion that there was a reasonable cause on the part of the assessee for delayed deposit of the TDS and non-furnishing of the TDS returns in Form No.24Q and 26Q for all the four quarters during F.Y. 2010-11. As relying on JCL INFRA LTD. C/O. M/S. DEEPAK JAIN CO. [ 2018 (7) TMI 1315 - ITAT DELHI] and M/S. AQUAFIL POLYMERS ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 24Q, 2Q 15.10.2010 30.07.2011 288 24Q, 3Q 15.01.2011 30.07.2011 196 24Q, 4Q 15.06.2011 30.07.2011 76 Total 940 F.Y. 2010-11 Quarterly Returns Due Date Date of Submission Late ( ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... bed time limit. However, the JCIT rejected the explanation given by the assessee and levied penalty of ₹ 2,26,400/- being the total of default for 24Q 94 days for F.Y. 2010-11 and default in 26Q of 1324 days for F.Y. 2010-11. 5. In appeal, the ld.CIT(A) confirmed the action of the Assessing Officer by observing as under:- 4.5 The delay in filing of TDS return for F.Y. 2010-11 in Form 24Q for the all four Quarters by 940 no. of days and in Form 26Q for the all four Quarters by 1324 no. of days (total 2264 no. of days). The very fact that in the case of the appellant, the delay is not of one or two days but has been of about 2264 no. of days in F.Y. 2010-11 cumulatively, does reveal a willful attempt on pa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... te this, the quarterly statements have been filed after considerable delay. This can not be considered under the purview reasonable cause contemplated u/s 273B of the IT. Act. Further, tax deducted at source belongs to the Central Government. The credit for the same is to be given to the deductee to whom payment has been made by the deductor. Hence, financial hardship cited by the appellant does not come into play directly. In the facts and circumstance, I am of the considered view that the appellant s case is clearly distinguishable from the judicial pronouncement relied upon by it. Accordingly, no interference is called for in respect of the penalty order passed by the Joint CIT. 6. Aggrieved with such order ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Referring to the copy of the order of the Tribunal in the case of JCL Infra ltd. vs. Addl.CIT, he submitted that under identical circumstances, the Tribunal considered the explanation offered by the assessee as reasonable cause within the meaning of section 273B of the Act and deleted the penalty so levied by the Assessing Officer and upheld by the CIT(A). Referring to the following decisions, he submitted that penalty levied by the JCIT and upheld by the CIT(A) in the instant case should be deleted:- i) M/s Aquafil Polymers Co. Pvt. Ltd. vs. Addl.CIT, TDS Range, Ahmedabad, ITA Nos.3246 3247/Ahe/2015, dated February 3, 2016; ii) Income-Tax officer, Ward 49(1), vs. Amcon Engineers (P) Ltd., ITA No.2253 2254/ ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... act that the bank account of the assessee was declared as NPA and public notices were given. The assessee company has drastically reduced its number of offices and had retrenched certain employees due to the financial crisis that it had undergone. The development project was also dropped because of financial crisis and liquidity crunch. There is also default on the part of the assessee to adhere to the one time settlement of its secured loan outstanding. All these facts indicate that there was some problem going on in the financial affairs of the assessee company. Under these circumstances, we are of the considered opinion that there was a reasonable cause on the part of the assessee for delayed deposit of the TDS and non-furnishing of the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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