2013 (2) TMI 345

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....laiming the following substantial questions of law :  "(i) Whether, on the facts and in the circumstances of the case, the hon'ble Tribunal was right in law for deleting the penalty levied under section 272B of the Income-tax Act, 1961, amounting to Rs. 19,60,000 for non-quoting/wrong quoting of PANs in 196 cases in the TDS returns 24Q for the assessment year 2009-10 ?  (ii) Whether, on the facts and in the circumstances of the case, the hon'ble Tribunal was right in deleting the penalty and giving relief to the assessee merely on the ground that the appellant deducted TDS correctly and revised PAN and filed the revised statement in Form 26Q. While penalty was levied for non-quoting of PANs of deductees in Form 24Q. Thus, ac....

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....before the Commissioner of Income-tax (Appeals) ("the CIT(A)") which was allowed, vide order dated August 12, 2011, annexure A2 and penalty was deleted. Dissatisfied with the order, the Revenue filed an appeal before the Tribunal which was also dismissed, vide order dated December 19, 2011, annexure A3. Hence, this appeal by the Revenue. 3. The issue in this appeal relates to whether there was justifiable cause within the meaning of section 273B of the Act on the basis of which it could be said that sufficient cause had been shown by the respondent-Superintendent of Police in wrongly quoting PAN in respect of 196 employees of the department. The Commissioner of Income-tax (Appeals) had recorded as under :  "In the instant case, a....

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.... default is only with regard to the wrong quoting of PAN of 196 of the deductees, such deductees quoted wrong PAN. However, correct PAN was given as soon as default was brought to the notice of the assessee. In this case, the Commissioner of Income-tax (Appeals) has categorically observed that the assessee deducted TDS correctly and revised PAN and filed the revised statement on Form 26G, hence there was sufficient compliance with the provisions of section 139A. There is no dispute that the assessee quoted invalid PAN for 196 deductees which was corrected on being pointed out by Income-tax Officer (TDS). In the instant case, failure to quote right PAN has occurred as the concerned depositor had misquoted PAN. There is also no dispute that t....