2011 (5) TMI 1027 - AT - Income Tax

Tribunal overturns penalty for late tax returns, emphasizes fairness in proceedings

Manager, Union Bank of India Versus Addl. C.I.T., Range-3, Mathura

Manager, Union Bank of India Versus Addl. C.I.T., Range-3, Mathura - TMI Issues involved: Appeal against penalty imposed u/s 272A(2) of the Income Tax Act for failure to furnish quarterly e-TDS returns as prescribed u/200(3).Summary:The appeal was filed against the penalty imposed by the Assessing Officer u/s 272A(2) of the Income Tax Act for the failure to furnish quarterly e-TDS returns as required. The Assessing Officer noted the non-compliance and issued notices, but the returns were still not filed. The penalty was confirmed by the CIT(A) as the assessee did not provide any reasonable cause for the delay. During the hearing, the assessee's counsel argued that the delay was due to the new e-filing system and that the assessee was not given a proper opportunity to explain. The Departmental Representative contended that the assessee had sufficient opportunity but failed to provide a reasonable cause. The Tribunal decided to set aside the impugned order and remand the matter to the CIT(A) for a fresh decision, allowing the assessee another opportunity to present their case. Ultimately, the appeal of the assessee was allowed for statistical purposes.The Tribunal found that the assessee failed to file the quarterly e-TDS returns as required by law, leading to the penalty imposed by the Assessing Officer u/s 272A(2). The CIT(A) confirmed the penalty as the assessee did not present any reasonable cause for the delay in filing the returns. During the hearing, the assessee's counsel argued that the delay was due to the introduction of the new e-filing system and the lack of a proper opportunity to explain the delay. The Departmental Representative contended that the assessee had been given sufficient opportunity but failed to provide a reasonable cause for the delay. The Tribunal decided to remand the matter to the CIT(A) for a fresh decision, allowing the assessee another chance to present their case and provide a reasonable cause for the delay.Ultimately, the Tribunal set aside the impugned order and allowed the appeal of the assessee for statistical purposes, emphasizing the importance of justice and fair play in the proceedings. The decision to remand the matter to the CIT(A) was made to ensure that the assessee had a fair opportunity to present their case and provide a reasonable cause for the delay in filing the quarterly e-TDS returns.