2012 (11) TMI 1139 - AT - Income Tax

Tribunal limits penalty for PAN non-quotation in e-TDS statement, upholding CIT decision.

The Income Tax Officer (TDS), Versus State Director Secondary Education,.

The Tribunal upheld the decision of the CIT (Appeals) to limit the penalty under section 272B to Rs. 10,000 for failure to quote PAN numbers in the e-TDS ... Levy of penalty u/s 272B - non quoting/wrong quoting of PANs in the TDS Return 24Q - Held that:- As per section 272B(1) of the Act If a person failed to comply with the provision of section 139A, the Assessing Officer may direct that such person shall pay, by way of penalty a sum of ₹ 10,000/. thus the penalty u/s 272B of the Act at is restricted to ₹ 10,000/- appeal of the Revenue is dismissed. Issues:Levy of penalty under section 272B of the Income Tax Act for default in quoting PAN numbers in e-TDS quarterly statement.Analysis:The appeal was filed by the Revenue against the order of the Commissioner of Income-tax (Appeals) relating to the penalty levied under section 272B of the Income Tax Act for the assessment year 2009-10. The assessee had defaulted in quoting PAN numbers of 49 deductees in the e-TDS quarterly statement filed for the financial year 2008-09. The Assessing Officer imposed a penalty of Rs. 4,90,000, which was later restricted to Rs. 10,000 by the CIT (Appeals).The main issue raised in the appeal was the levy of penalty under section 272B of the Act for the default in quoting PAN numbers in the e-TDS quarterly statement. The assessee had wrongly quoted PAN numbers for the deductees and did not file a correction statement before the Assessing Officer or before the order of the CIT (Appeals). Section 272B(1) of the Act provides that failure to comply with the provisions of section 139A may result in a penalty of Rs. 10,000. The CIT (Appeals) restricted the penalty to Rs. 10,000 based on this provision.Despite multiple notices issued to the assessee, no representation was made on their behalf during the appeal proceedings. The Tribunal, after hearing the Revenue's representative, upheld the order of the CIT (Appeals) and dismissed the grounds of appeal raised by the Revenue. The penalty under section 272B was maintained at Rs. 10,000, and the appeal of the Revenue was ultimately dismissed.In conclusion, the Tribunal affirmed the decision of the CIT (Appeals) to restrict the penalty under section 272B to Rs. 10,000 for the default in quoting PAN numbers in the e-TDS quarterly statement, in accordance with the provisions of the Income Tax Act.