M/S. REMUNERATIVE PROJECT CELL,NEW DELHI vs. JCIT, NEW DELHI

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH : SMC-I : NEW DELHI

BEFORE SHRI R.S. SYAL, ACCOUNTANT MEMBER ITA No.959/Del/2014 Assessment Year : 2011-12 Remunerative Project Cell, Vs. JCIT, 16th Floor, Civic Centre, Range-51, Minto Road, New Delhi. New Delhi. PAN : DELR19631D

(Appellant) (Respondent) Appellant by : Dr. Ram Samujh, Advocate Respondent by: Shri N.K. Bansal, Sr.DR Date of Hearing : 03.11.2016 Date of Pronouncement: 04.11.2016 ORDER

This appeal by the assessee is directed against the order passed by the CIT(A) on 24.12.2013 in relation to Assessment Year 2011-12.

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penalty imposed by the Assessing Officer (AO) u/s 272A(2)(k) of the

Income Tax Act, 1961 (hereinafter also called ‘the Act’) in relation to the

A.Y. 2011-12.

North Delhi Municipal Corporation. It was created on 6.1.2010 for Parking

management for the North Delhi Municipal Corporation (MCD) which was

receiving revenue from Parking Management and collecting the taxes at

source from contractors/sub-contractors. The MCD was required to pay the

amount of taxes collected at source and to file the TDS statements with the

Income-tax Department. The AO imposed penalty u/s 272A(2)(k) of the

Act totalling Rs.18.75 lac for the Financial years 2007-08 to 2010-11 on

the ground that the assessee failed to comply with the provisions of section

200(3) read with proviso to section 206A(3) as it did not file the quarterly

e-TDS statements. The ld. CIT(A) deleted the penalty for the Financial

years 2007-08, 2008-09 and 2009-10 on the ground that this unit was not

responsible for collecting the TCS for parking and, hence, there was no

requirement of filing e-TDS returns. However, for the assessment year

under consideration, it was noticed that the TCS was deposited on 5.3.2012

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and Form No.227EQ was filed on 24.10.2013. The assessee is aggrieved

against the confirmation of penalty.

on record. There is no denial of the fact that the assessee failed to furnish

TCS returns in time, thereby attracting the penalty u/s 272A(2)(k).

However, it is relevant to mention that the penalty imposed under this

provision is subject to section 273B which provides that if there is a

reasonable cause for non-compliance with the provisions attracting penalty,

then, such penalty shall be waived.

has pleaded before the ld. CIT(A) and also mentioned the same through

written submissions before the Tribunal that the work relating to parking

management was centralized to the Remunerative Project Cell (Appellant)

vide order no.OSD(RPC) 2010/D-348 dated 06.01.2010. Thereafter, it was

directed to shift its office from Kashmere Gate, Old Hindu College

Building to the 25th Floor, Civil Centre, New Delhi vide order dated

08.09.2009. Then, MCD was bifurcated into three different corporations

vide Notification dated 29.12.2011. It has been further pleaded that though

the work relating to Parking Management was assigned to the appellant

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vide letter dated 06.01.2010, yet the transfer of files/records from twelve zones of the MCD took time for more than one year. It has also been contended that the work for filing the returns of the income tax relating to for Parking Management was new to the appellant and the officers/officials became aware about the work relating to Parking Management only after receipt of complete files/records from twelve zones of the MCD. It is clear from the above that the non-compliance with the relevant provisions was not without reasons. In my considered opinion, there was a reasonable cause on the part of the assessee in not complying with the provisions requiring e-filing of TCS returns. As the non-compliance was necessitated due to reasonable cause, I hold that the penalty is not sustainable. The same is directed to be deleted.

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