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Income Tax Appellate Tribunal, DELHI BENCH, ‘E’: NEW DELHI
ORDER PER M. BALAGANESH AM, This appeal of the Assessee arises out of the order of the Learned Commissioner of Income Tax (Appeals)/National Faceless Appeal
Centre (NFAC), Delhi, [hereinafter referred to as ‘Ld. CIT(A)’] in Appeal No. NFAC/2011-12/10060363 against the order passed by JCIT, Range-75, New Delhi (hereinafter referred to as the ‘Ld. AO’) u/s 272A(2)(c) of the Income Tax Act, 1961 (hereinafter referred to as ‘the Act’) on 23.08.2021.
The only issue to be decided in this appeal is as to whether the ld.CIT(A) was justified in confirming the levy of penalty u/s 272A(2)(c ) of the Act in the facts and circumstances of the instant case.
We have heard the rival submissions and perused the materials available on record. It is not in dispute that the assessee for the relevant quarters of the financial year 2011-12 had filed its TDS returns belatedly. The Tax deducted were duly remitted by the assessee with applicable interest to the account of the Central Government.
Admittedly, no order was passed u/s 201(1) / 201(1A) Of the Act on the TDS returns filed by the assessee for the respective quarters. After a gap of nearly 8 years, the ld. AO directly levies penalty u/s 272A(2)(c) of the Act for belated filing of TDS returns by the assessee.
At the outset, this penalty proceeding has been initiated without there being any order passed u/s 201(1) / 201(1A) of the Act framed on the assessee. Moreover, on perusal of the penalty order , we find that the ld. AO had not even mentioned what is the default committed by the assessee and what information ought to have been furnished by the assessee in the TDS statements or particulars mentioned in section 133 or section 206 or section 206C or section 285B of the Act. The ld. AO had not even mentioned the fact as to whether the assessee is obliged to file statements or particulars u/s 133 /206/206C/285B of the Act.
None of these sections were even mentioned by the ld. AO in his penalty order. Hence this itself goes to prove that there is complete non-application of mind on the part of the ld. AO while levying the penalty apart from levying the same after a belated period of 8 years.
Hence the penalty levied would have no legs to stand in the eyes of law and accordingly directed to be deleted. Accordingly, the ground raised by the assessee is allowed.
In the result, the appeal of the assessee is allowed.
Order pronounced in the open court on19th December, 2023.