SMV AGENCIES PVT. LTD.,DELHI vs. ADDL. CIT, NEW DELHI

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ITA 1955/DEL/2015Status: DisposedITAT Delhi22 April 20192 pages
AI SummaryAllowed

What did the Tribunal hold?

The Tribunal held that the delay was caused by the introduction of new procedures for filing e-TDS returns quarterly instead of annually. The staff's unfamiliarity with the new system was accepted as a reasonable explanation for the delay.

What were the facts?

The assessee appealed against a penalty levied under Section 272A(2)(k) for the assessment year 2006-07. The penalty was imposed due to a delay in filing the e-TDS return.

What were the issues?

Whether a delay in filing e-TDS returns, due to the introduction of new procedures and staff unfamiliarity, warrants a penalty under Section 272A(2)(k).

Which sections of the Income-tax Act were involved?

Section 272A(2)(k)

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, IN THE INCOME TAX APPELLATE TRIBUNAL

Before: SHRI G.D. AGRAWAL & AND BEFORE SHRI & AND MS. SUCHITRA KAMBLE

For Appellant: Smt. Manju Yadav, Advocate
For Respondent: Shri N.K. Bansal, Senior DR
Hearing: 16.04.2019Pronounced: 22.04.2019

PER G.D. AGRAWAL, PER G.D. AGRAWAL, VICE PER G.D. AGRAWAL, PER G.D. AGRAWAL, VICE VICE PRESIDENT VICE PRESIDENT PRESIDENT :- PRESIDENT

1.

This appeal by the assessee for the assessment year 2006-07 is directed against the order of learned CIT(A)-41, New Delhi dated 14th January, 2015.

2.

The only ground raised in this appeal is against the levy of penalty under Section 272A(2)(k) amounting to `21,400/-.

3.

We have heard the arguments of both the sides and perused the material placed before us. We find this issue to be squarely covered by the decision of ITAT in assessee’s own case vide wherein the ITAT cancelled the penalty levied under Section 272A(2)(k) with the following observation :-

2 ITA-1955/Del/2015

“3. On a perusal of the impugned order, we find that the ld.CIT(A) acknowledged the fact that in the F.Y. 2005-06 filing of e-TDS return was introduced and there was a change from filing annual returns to quarterly returns. It is further stated that in respect of the first quarter also there occurred some delay. It is, therefore, clear that with the introduction of the e-TDS return filing and change from the filing of annual returns to quarterly returns the delay was caused. There is nothing unacceptable in the explanation of the assessee that the cause of delay was the non- acquaintance of the staff with the newly introduced procedures. In the circumstances, we are of the considered opinion that the violation in this respect is a venial breach of law and does not attract penalty proceedings in the very first year of introduction of the new procedures. We, therefore, delete the addition.”

4.

Since the facts in the case under appeal before us are identical, we, respectfully following the above decision of ITAT, cancel the penalty levied under Section 272A(2)(k) of the Act.

5.

In the result, the appeal of the assessee is allowed. Decision pronounced in the open Court on 22.04.2019.

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