Reasonable cause for delayed TDS filing bars penalty where PAN details were unavailable and default was only technical.

Penalty for delayed filing of quarterly TDS statements was held not leviable where the assessee could not upload the returns on time because PAN particulars of deductees were unavailable. The delay was treated as a technical breach supported by reasonable cause, with no finding of mala fide intent or wilful negligence. As penalty provisions of a quasi-criminal character do not operate mechanically, section 272A(2)(k) could not be applied in the circumstances, and deletion of the penalty was justified.

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Issues: Whether penalty for delayed filing of TDS statements under section 272A(2)(k) of the Income-tax Act, 1961 was leviable when the delay occurred because PAN details of deductees were not available and whether such delay was protected by reasonable cause under section 273B.

Analysis: The delay in filing quarterly TDS statements was found to have occurred because the assessee did not have PAN particulars of the deductees and, for that reason, could not upload the returns within time. The material facts were treated as identical to those in the cited co-ordinate Bench decision, where it was held that such delay, arising from practical difficulty in electronic filing and absence of mala fide or wilful negligence, amounted to a technical breach supported by reasonable cause. In such circumstances, penalty provisions of a quasi-criminal character were held not to operate mechanically.

Conclusion: The penalty under section 272A(2)(k) was not leviable and the deletion of penalty was justified.

Final Conclusion: The assessee succeeded and the penalty order was set aside on the ground of reasonable cause for the delayed filing of TDS statements.

Ratio Decidendi: Penalty for delay in filing TDS statements is not leviable where the assessee establishes reasonable cause and the default is only technical or venial in nature without wilful negligence or mala fide intent.

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