ITAT confirms penalty for late TDS filing under Income Tax Act

The ITAT Mumbai upheld the FAA's decision, confirming the penalty imposed on the assessee for late filing of TDS returns under section 272A(2)(k) of the Income Tax Act, 1961. The appeal by the AO was dismissed, and the penalty amount was upheld.

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Issues:
Challenging late filing of TDS returns leading to penalty under section 272A(2)(k) of the Income Tax Act, 1961.

Analysis:
The Assessing Officer (AO) filed an appeal against the order of the CIT (A)-14, Mumbai, regarding the late filing of TDS returns by the assessee. The AO found that the assessee failed to file TDS returns on time as required under section 200(3) read with Rule 31A of the Income Tax Rules, 1962. The AO issued a show cause notice and imposed a penalty of Rs. 4.77 lakhs under section 272A(2)(k) of the Act due to delays in filing the TDS returns for the Assessment Year 2007-08.

The assessee appealed to the First Appellate Authority (FAA) arguing reasons for the delays, such as unawareness, non-availability of PANs, and outsourcing of work. The FAA considered the submissions and the penalty order, emphasizing that the assessee must deliver the statement within the specified time under section 200(3) of the Act. The FAA referred to a previous case and directed the AO to recompute the penalty from the date of tax payment to the date of filing the return.

During the ITAT Mumbai hearing, the Departmental Representative (DR) suggested deciding the matter on merits. As the assessee did not appear or request an adjournment, ITAT decided based on available material. ITAT noted that the FAA had sought details on the delay in filing TDS returns and followed the Tribunal's order in directing the AO to recalculate the penalty. ITAT found no legal or factual issues in the FAA's order and upheld the decision, dismissing the AO's appeal.

In conclusion, the ITAT upheld the FAA's decision, confirming the penalty for late filing of TDS returns by the assessee. The appeal by the AO was dismissed, and the order was pronounced on January 10, 2017.

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