Belated TDS statement filing is a technical breach when tax is timely deducted and paid; penalty was deleted.

Penalty under section 272A(2)(k) was not leviable for delayed electronic filing of quarterly TDS statements where tax was duly deducted and remitted to the Central Government within time. The delay related only to compliance with section 200(3) and Rule 31A, and was treated as a procedural lapse causing no loss to the exchequer. On these facts, the non-compliance was regarded as a technical, venial breach and reasonable cause was found for the delay, so the penalty was directed to be deleted.

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Issues: Whether penalty under section 272A(2)(k) of the Income-tax Act, 1961 was leviable for belated filing of quarterly TDS statements despite timely deduction and remittance of tax.

Analysis: The assessee had deducted tax at source and remitted it to the Central Government within time, and the delay was confined to electronic filing of the quarterly TDS statements under section 200(3) read with Rule 31A of the Income-tax Rules, 1962. The delay was treated as a mere procedural lapse causing no loss to the exchequer, and the non-compliance was held to be a technical venial breach. On these facts, the assessee was held to have been prevented by reasonable cause from filing the statements within the prescribed time.

Conclusion: Penalty under section 272A(2)(k) was not leviable and was directed to be deleted.

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