THE BHATIA GENERAL HOSPITAL,MUMBAI vs. ADDL CIT (TDS) RG 3, MUMBAI

This appeal filed by the assessee on 4.9.2014 is against the order of the CIT (A)-14, Mumbai dated 25.6.2014 for the assessment year 2011-2012.

In this appeal, assessee raised nine grounds in toto. The only issue that emanates from all the grounds relates to the levy of penalty u/s 272A(2)(k) of the Act. Briefly stated relevant facts in this regard are that assessee is a Trust running hospital for philanthropic purposes. During the scrutiny proceedings, AO noticed that the assessee has not filed the quarterly TDS statements for the AY 2011-12 within stipulated period and specified forms. Considering the same, AO levied the penalty for the default of filing of TDS return in Form No.24Q and Form No.26Q. The said returns were filed belatedly to the TDS authorities. The details of delay are given in para 3.1 of the CIT (A)‟s order. AO levied the penalty of Rs. 54,100/- for default relating to the salary return and levied penalty of Rs. 18,100/- in respect of the statement relating to other than the salaries. Assessee submitted that the lack of proper manpower, infrastructure and the high cost in employing the accounting personnel are the reasons for the said delay. AO and the CIT (A) rejected the same and the penalty is confirmed.