Appeal allowed, penalty deleted for delayed TDS return filing

The appeal challenging the penalty under section 272A(2)(k) of the Income Tax Act for delayed filing of TDS return was allowed. The Tribunal directed the Assessing Officer to delete the penalty, ruling in favor of the assessee due to the technical breach and absence of loss to the Revenue Department. The decision was pronounced on 15/11/2022.

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Issues: Appeal against penalty under section 272A(2)(k) of the Income Tax Act for delayed filing of TDS return.

Analysis:
1. Background: The appeal challenges the penalty imposed under section 272A(2)(k) of the Income Tax Act for the assessment year 2016-17, arising from the delay in filing the TDS return for the 3rd quarter of the financial year 2015-16.

2. Ex-Parte Hearing: The appeal proceeded ex-parte as neither the assessee nor any representative appeared during the hearing, leading to a decision based on the material available on record.

3. Delay Condoned: A slight delay of 12 days in filing the appeal was condoned in the interest of justice, with no objections raised by the Departmental Representative during the hearing.

4. Grounds of Appeal: The sole grievance of the assessee was against the penalty levied under section 272A(2)(k) of the Act for the delayed filing of the TDS return.

5. Assessee's Submission: The assessee contended that the delay was due to negligence and lack of awareness regarding the importance of timely TDS return filing, with no malafide intention for concealment of TDS amount.

6. Department's Argument: The Departmental Representative emphasized that ignorance of the law is not a valid excuse, supporting the impugned order.

7. Legal Analysis: Section 272A(2)(k) provides for penalties for failure to submit TDS statements on time, with a provision under section 273B allowing exemption if a reasonable cause is proven. The assessee timely deducted and deposited the tax, with the delay attributed to negligence and lack of professional guidance in a rural area.

8. Decision: Considering the technical breach and absence of loss to the Revenue Department due to timely tax deposit, the penalty was deemed unwarranted. The Tribunal directed the Assessing Officer to delete the penalty upheld by the CIT(A), allowing the appeal in favor of the assessee.

9. Outcome: The appeal by the assessee against the penalty under section 272A(2)(k) was allowed, with the decision pronounced in open court on 15/11/2022.

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