VISA CHEMICAL INDUSTRIES,THANE vs. ADDL CIT TDS RG, THANE

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ITA 4179/MUM/2016Status: DisposedITAT Mumbai13 September 2017AY 2011-123 pages
AI SummaryAllowed

What did the Tribunal hold?

The Tribunal deleted the penalty, following its own prior decision for AY 2009-10 where similar facts led to penalty deletion. The delay was considered due to genuine difficulties faced by the assessee.

What were the facts?

The assessee was levied penalty under Section 272A(2)(k) for delay in filing quarterly TDS statements for AY 2010-11 and 2011-12. The delay was attributed to the assessee not having the PAN numbers of the deductees.

What were the issues?

Whether penalty under Section 272A(2)(k) is leviable for delay in filing TDS statements when the delay is due to genuine difficulties faced by the assessee.

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, MUMBAI BENCH “D”, MUMBAI

Before: SHRI G.S. PANNU & SHRI C.N. PRASAD

For Appellant: Shri M. Subramanian, Advocate
For Respondent: Shri Purushotam Kumar
Hearing: 03.08.2017Pronounced: 13.09.2017

Heard together (2 matters)

ITA.No.4178/MUM/2016
ITA.No.4179/MUM/2016

Read from the judgment's own cause title. This page is filed under one of them.

PER C.N. PRASAD (JM) 1. These two appeals are filed by the assessee against different orders of the Ld.CIT(A) dated 21.03.2016 for the Assessment Years 2010-11 and 2011-12 in sustaining the penalty levied u/s 272A(2)(k) of the I.T. Act for the delay in filing quarterly TDS statements.

1.

2 ITA.No.4178/MUM/2016 (A.Y: 2010-11) ITA.No.4179/MUM/2016 (A.Y: 2011-12) M/s. Visa Chemical Industries 2. Learned Counsel for the assessee, at the outset submits that penalty levied on similar circumstances for the Assessment Year 2009-10 has been deleted by the Coordinate Bench in assessee’s own case in ITA.No.4177/Mum/2016 dated 26.05.2017. The Learned Counsel for the assessee submits that since facts and circumstances being identical the penalty levied for the Assessment Years 2010-11 and 2011-12 may also be deleted.

3.

Ld. DR vehemently supported the orders of the lower authorities.

4.

Heard rival submissions perused the orders of the authorities below and the decision of the Coordinate Bench. The Coordinate Bench deleted the penalty levied for delay in furnishing the TDS statements in the immediately preceding Assessment Year following the decision of the Cuttack Bench in the case of State Bank of India v. JCIT [56 Taxman.com 319], where identical issue is decided. The delay in furnishing TDS statements seems to have happened for the reason that assessee did not have PAN No. of the deductees and therefore unable to upload the TDS returns on the system of the department. Taking note of the difficulties of the assessee in furnishing the TDS returns within the time, the Coordinate Bench deleted the disallowance. Thus, respectfully following the said decision of the Coordinate Bench in assessee’s own case for the 3 ITA.No.4178/MUM/2016 (A.Y: 2010-11) ITA.No.4179/MUM/2016 (A.Y: 2011-12) M/s. Visa Chemical Industries Assessment Year 2009-10 in ITA.No.4177/Mum/2016, we delete the penalties levied for these two Assessment Years also.

5.

In the result the appeals of the assessee are allowed.

Order pronounced in the open court on the 13th September, 2017.

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