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Income Tax Appellate Tribunal, DELHI BENCH: ‘G’ NEW DELHI
Before: SHRI G.D. AGRAWAL, HON’BLE & SHRI K. NARASIMHA CHARY
ORDER PER K. NARASIMHA CHARY, J.M.
This is an appeal by the Assessee against the order dated 14.01.2015 of Ld. Commissioner of Income Tax (Appeals)- 41, (“Ld. CIT(A)) New Delhi relating to AY 2006-07.
This matter relates to the levy of penalty for late filing of the quarterly returns relating to second and third quarter of the F.Y. 2005-06. It was explained before the Ld.CIT (A) that the accounting staff of the assessee were not conversant with the newly introduced procedures and that is the reason why the delay occurred. However, the Ld. CIT (A) did not agree with such an explanation while dismissing the appeal.
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.
In the result, the appeal of the assessee is allowed accordingly.