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Income Tax Appellate Tribunal, “B” BENCH, CHENNAI
Before: SHRI N.R.S. GANESAN & SHRI S. JAYARAMAN
आदेश/ O R D E R
PER S. JAYARAMAN, ACCOUNTANT MEMBER:
The assessee filed this appeal against the order of Commissioner of Income Tax (Appeals)-17, Chennai in dated 11.09.2017 for assessment year 2011-12.
Transcoastal Cargo & Shipping Ltd., the assessee, filed E–TDS returns for all the quarters for assessment year 2011-12, belatedly. For this delay, the Joint Commissioner, TDS Range 3, Chennai levied penalty in total 1,47,125/- u/s. 272A(2)(k) dated 28.05.2014.
Aggrieved, the assessee filed appeal before the CIT(A). The CIT(A) dismissed the appeal.
3. Against the order of the CIT(A), the assessee filed this appeal with the following grounds of appeal:
“1. The order of the Commissioner of Income Tax (Appeals) is opposed to the facts and circumstances of the case and law.
2. The Commissioner (Appeals) erred in confirming the order of the JClT levying penalty of Rs.147125/- u/s 272A(2)(k) of the Act for delay in filing of TDS Statements u/s 200(3) inspite of the explanation rendered by the appellant for such delay.
The Commissioner (Appeals) erred in not seeing that the appellant company though undergoing serious financial and administrative difficulties at the relevant time had deducted the TDS amounts and paid the same to the credit of the Government and the delay was in the filing of the e-TDS returns only.
4. The Commissioner (Appeals) erred in sustaining the penalty levied on technical reasons overlooking the fact that the appellant company’s ships had been arrested, bank accounts frozen and all the staff had left the company, and the chartered accountant of the company was suffering from Brain tumour to which he succumbed resulted in inability to follow up the matter and hence the delay in filing of e-TDS returns occurred, which constituted a reasonable cause envisaged u/s 273B of the Act.
5. For these and other Grounds that may be adduced at the time of hearing of the appeal the appellant prays that the Hon’ble Tribunal be pleased to cancel the penalty levied, allow the appeal and render justice.”
4. The AR submitted though the assessee has filed returns belatedly, paid all the dues with returns and hence pleaded for deletion of penalty on the above grounds. Further, he invited our attention to the contents of the assessee’s letter dated 21.05.2014 filed before the JCIT, the relevant portion is extracted as under:
“Transcoastal Cargo & Shipping Ltd (TCSL) was in financial difficulty ever since the Global meltdown of 2008. The cash flow was very badly affected resulting in the closing down of commercial operations in the fy 2010-1:1. During this period, I lost all my staff and was unable to carry out statutory duties in time. Though the TDS was paid, to the department, sincerely regret the delay in filing and humbly request you to waive the penalty that is prescribed u/s 272A(2) of the Income Tax Act 1961.” and submitted that on these reasonable causes, the AO was requested not to levy penalty and thereafter pleaded before the Ld CIT(A) on various grounds. In spite of the above reasonable causes , unfortunately the Ld CIT(A) upheld the levy and hence pleaded to delete the same.
Per contra, the Ld DR supported the orders of the lower authorities.
We heard the rival submissions and gone through relevant material.
We find that the lower authorities have not disputed the facts canvassed
:-4-: by the assessee, therefore, there were reasonable causes for non-levy of penalty and hence we direct that the impugned penalty be deleted. The assessee’s appeal is allowed.
In the result , the assessee’s appeal is allowed.
Order pronounced on Thursday, the 06th day of December, 2018 at Chennai.