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TMI Blog2021 (12) TMI 446X X X X Extracts X X X X X X X X Extracts X X X X ..... 90200005566 15.10.08 05.02.11 843 9373 9373 26Q Q3 2008-09 74090200005570 15.01.09 05.02.11 751 6234 6234 26Q Q4 2008-09 74090200005581 15.06.09 05.02.11 600 74152 60000 Total 169107 3. As per the above chart, the penalty was levied based on the order of Addl. CIT(TDS) that the assessee paid the tax deducted during survey conducted on 04.02.2009 to finalize the TDS liability. The show cause notice was issued to the assessee and after considering the reply filed by the assessee, the Addl. CIT(TDS) levied penalty u/s 272A(2)(k) of the Income Tax Act, 1961 (in short Act). With the above observation that the reason given by the assessee were general and there was no reasonable cause for delay. 4. Aggrieved, the assessee preferred an appeal before the Ld. CIT(A)-2, Pune, after considering the submissions of the assessee, the Ld. CIT(A) sustained the penalty levied by the Addl. CIT(TDS) with the following observation : "5.7 In view of aforesaid discussion on the facts of the case, provision and decisions cited, I hold that it is necessary for the deduc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d on 04.02.2009 W/s 133A for TDS purpose. At the time of survey, assessee paid a sum of Rs. 1,09,915/- as directed by the Department. 5. During the survey, appellant had paid such TDS on Expenses which were liable for deduction of TDS on the instruction of Department. However, such amount was paid on the instruction of the department and therefore, appellant was not having both TDS challans and party-wise details to file quarterly TDS returns. 6. It is submitted that the above TDS was paid through Department directly. Challans which was received by appellant are enclosed herewith for your reference. It can be seen that TDS has been paid by Cash. Hence, appellant has no clue on which basis such liability has been determined and further, against which parties TDS has been deducted. Reasonable Cause - II-Bonafide belief that TDS compliances have been made 7. Since, department has itself directed and finalized the TDS liability of Rs. 1,09915/-, appellant was under bonafide belief that all TDS liability are paid off and there no further compliances to be made Reasonable Cause - Ill- Practical difficulties in collecting PAN & Details. 8. Please note that, the Appellant wa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s initiated recovery proceedings against the appellant in Court. 18. Further, appellant's bank a/c was also fridged and loan facility was stopped by bank. 19. Due to acute financial problem and non-corporation from bankers, appellant's health was also badly affected. 20. Appellant is a heavy diabetic and asthmatic patient with BP problem and on insulin Appellant has not only fallen ill but was also hospitalized in or around February 2009. Reasonable Cause -VI - Prosecution Dropped 21. It may be noted that the prosecution proceedings launched by the department against the appellant was also dropped on account of the forgoing facts and difficulties being reasonable cause. Reliance is placed on following case laws:- A. S. 272A : Penalty - Failure to answer questions - Sign statements - Furnish information - Reasonable cause - Levy of penalty was held to be not justified. [S. 272A(2)(e), 272(2) (k)] Allowing the appeal, the Tribunal held that; delay in filing TDS returns cannot be levied if the delay was caused due to requirement to collect PAN of payees. The non-availability of the PAN of the payees is a reasonable cause. The delay is unintentional and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n appeal Held, allowing the appeal, that according to section 273B of the Act, if reasonable cause for the failure to file the return of tax deducted at source was proved, penalty was not imposable. In the assessee's case, the assessee explained that it was not aware of the fact that a return was to be filed at the branch level. Thus there was reasonable cause for failure to comply with the requirement. The tax was deducted on time and paid to the Department and the necessary return was also filed. Therefore, no loss of revenue had occurred on account of late filing of the return. Thus, the penalty was merely technical in nature and since levy of penalty was not mandatory, depending upon the facts of the case, the penalty was to be deleted. (AY. 2011-2012) State Bank of Bikaner and Jaipur v. Add. CIT (2015) 38 ITR 535 / 169 TTJ 29 (Chd.) (Trib.) Therefore, humble request is made before your honours to drop the penalty proceedings as there exists reasonable cause for not filing TDS returns on time since delay is unintentional and caused no loss to revenue as TDS has been paid ; in fact twice on same Amount." 7. On the other hand, the Ld. DR relied on the orders passed by ..... X X X X Extracts X X X X X X X X Extracts X X X X
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