TaxTMI 
TaxTMI 
2014 (4) TMI 526
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....led the Appeals and the assessee is in Cross Objections arising from a consolidated order of learned CIT(A)-XXI, Ahmedabad for A.Y. 1993-94 & 1994-95 and the grounds of the Revenue for the years involved are reproduced below. A. Assessment Years 1993-94. "The ld. CIT(A) has erred in law as well as facts of the case in deleting the penalty order passed u/s.272A(2)(g) of the IT Act of Rs.17,95,800/- for A.Y. 1993-94 by the AO." B. Assessment Year 1994-95 "The ld. CIT(A) has erred in law as well as facts of the case in deleting the penalty order passed u/s.272A(2)(g) of the IT Act of Rs.49,09,700/- for A.Y. 1994-95 by the AO." 2. At the outset, we have been informed that the facts for the purpose of l....
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....the contractors on different dates during the period F.Y. 1992-93 and the tax was deducted at source accordingly. Thus, the due date for issue on TDS certificate in each payment of contract amount was different. However, the combined and consolidated certificates of TDS showing the credit/payment of contract amount to the account of each contractor were issued as late as on 31.05.1993 in case of 92 payments/credit thereof. The aggregate days of default in respect of 92 payments/credit of contract amount to the accounts to contractors worked out at 17958 days. The minimum penalty u/s. 272A(2)(g) of the Act comes to Rs.17,95,800/- worked out at Rs.100/- per day as against maximum penalty comes to Rs.35,91,600/- at Rs.200/- per day for 17958 d....
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....he Act dealing with penalty. Wherever a penalty or prosecution is imposable for the offence of the failure to furnish within prescribed time, a specific provision is made in the Act for the same. By way of illustration, attention is invited to the provisions contained in Section 271(1)(a) (now omitted) which read as under .................... 18. I have carefully considered the submissions made by the appellant. In the present case, it is clear that there was a reasonable cause for delay of issue of TDS certificates since the forms were new and were not readily available. The tax deducted at source had been paid in time and the necessary return of the same was duly filed in time. No loss of revenue has occurred on accoun....
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....is default. Learned AR has informed that as per the provisions of Section 272A(2)(g) if any person fails to furnish a certificate as required u/s.203 of the IT Act then he shall pay by way of penalty a sum of Rs.100/- for every day during which the failure continued. As per Section 203 of IT Act every person deducting tax shall within a period as prescribed furnish to the person, to whose account such credit is given or payment is made, a certificate to the effect that tax has been deducted by specifying the amount so deducted and such other particulars as prescribed. The statute has incorporated Rule 31 of Income Tax Rules prescribing Form No.16 and Form No.16A, a certificate of deduction of tax at source. Rule 31 of IT Rules prescribes th....
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....lity of the circumstances of the case and hearing both the sides, we are of the considered opinion that the default in question was committed under a bona fide belief that the certificate in question was to be issued after the close of the financial year; hence, a consolidated certificate was issued to the deductee. We are, therefore, of the opinion that instead of holding that it was merely a technical or default of a venial in nature, we hereby hold that the failure referred was because of a reasonable cause; hence, in the light of the provisions of Section 273B, the assessee should not be penalized. We, therefore, hold that no penalty is imposable on this assessee u/s. 272A(2)(g) of IT Act. Resultantly, the grounds raised by the Revenues....