ITAT cancels penalty under Section 272A(2)(k) for 2006-07 due to minor breach by staff.

The ITAT cancelled the penalty imposed under Section 272A(2)(k) for the assessment year 2006-07, amounting to `21,400, as it deemed the delay in filing to be a minor breach caused by staff unfamiliarity with new procedures, similar to a previous case where the penalty was cancelled. The appeal was allowed, following the reasoning of the previous decision in the assessee's favor.

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Issues:
Levy of penalty under Section 272A(2)(k) for the assessment year 2006-07.

Analysis:
The appeal was filed against the order of the learned CIT(A)-41, New Delhi dated 14th January, 2015, specifically challenging the penalty imposed under Section 272A(2)(k) amounting to `21,400/-. The ITAT considered the arguments presented by both sides and reviewed the material before them. The key issue was whether the penalty was justified. The ITAT referred to a previous decision in the assessee's own case (ITA No.1956/Del/2015) where a similar penalty had been cancelled. In the previous case, it was noted that the delay in filing was due to the introduction of e-TDS return filing and a change from annual to quarterly returns. The ITAT found the delay to be a minor breach caused by staff unfamiliarity with the new procedures. Consequently, the penalty was deemed unjustified and was deleted.

The ITAT concluded that since the circumstances in the current case were identical to those in the previous case, where the penalty had been cancelled, they would follow the same reasoning. Therefore, the penalty levied under Section 272A(2)(k) for the assessment year 2006-07 was cancelled, and the appeal of the assessee was allowed. The decision was pronounced in open court on 22.04.2019.

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