TaxTMI 
TaxTMI 
TaxTMI 
2016 (8) TMI 508
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....en preferred by the assessee under section 260A of the Income-tax Act, 1961 (in short "the Act") against the order dated April 30, 2015 (annexure A-3) passed by the Income-tax Appellate Tribunal, Chandigarh Bench "A", Chandigarh (hereinafter referred to as "the Tribunal"), in I. T. A. No. 54/Chandi/2015, for the assessment year 2009-10, claiming the following substantial questions of law : "(i) Whether in the facts and in the circumstances of the case, the orders (annexure A-1), (annexure A-2) and (annexure A-3) are legally sustainable ? (ii) Whether on the facts and in the circumstances of the case the Income-tax Appellate Tribunal is legally justified in law in upholding the order imposing penalty of Rs. 4,84,945 under section 272A(2)....
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....re the Commissioner of Income-tax (Appeals) (for brevity "the CIT(A)") who vide order dated October 31, 2014 (annexure A-2) affirmed the penalty order and dismissed the appeal. Being dissatisfied, the appellant filed an appeal before the Tribunal. The Tribunal vide order dated April 30, 2015 (annexure A-4) upheld the order of the Commissioner of Income-tax (Appeals) and dismissed the appeal. Hence, the instant appeals. 4. Learned counsel for the appellant submitted that the penalty of Rs. 4,84,945 levied under section 272A(2)(k) of the Act was unwarranted. Section 200(3) of the Act and rule 31A of the Income-tax Rules, 1962 (in short "the Rules") were referred to by the learned counsel. It was also urged that there was reasonable cause wit....
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....ch time as may be prescribed." Section 200 incorporated in Chapter XVII of the Act deals with collection and recovery of tax and provides for various cases relating to deduction of tax at source. Sub-section (3) of section 200 of the Act was inserted by the Finance (No. 2) Act, 2004 with effect from April 1, 2005. It provides for filing of the statements as prescribed thereunder after deduction of the tax at source. 7. Rule 31A(2) of the Rules, which is relevant for the decision of the controversy raised in the appeal, is in the following terms : "31A. (2) Statements referred to in sub-rule (1) for the quarter of the financial year ending with the date specified in column (2) of the Table below shall be furnished by the due date specifi....
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....elevant statutory provisions, we proceed to examine the contention relating to concept of "no loss of revenue" for exigibility of penalty, as urged by the learned counsel for the appellant. Section 200(3) of the Act read with rule 31A(2) of the Rules enjoins upon any person deducting tax at source to file statements of deduction of tax at source within the prescribed period specified thereunder. In our opinion, the penal provisions contained in section 272A(2)(k) of the Act has been inserted for the purpose of compliance of filing of tax deducted at source returns in time in Form No. 26Q by due dates mentioned in rule 31A(2) of the Rules so that the information is available with the Department for utilizing by way of cross checking for prop....
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....in ensuring proper assessment of tax in the case of the persons from whose income, tax has been deducted at source. Hence, while non-filling of statement by the deductor may not entail a loss to the Revenue in deductor's case, it may result in loss of revenue in the case of deductees and so the contention of the learned counsel that in the absence of loss to the Revenue, the penalty imposed has to be cancelled is rejected." On appeal, the Tribunal had approved the said observations and the conclusion. Further, the Tribunal had recorded by way of example that grievance letter had also been received from one Shri Ashok Gulati by the Department intimating that the assessee had deducted tax at source but it was not reflected in the 26AS st....
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.... prescribed time as provided under rule 31A(2) of the Rules. Since the appellant had failed to do so, it had rightly been treated to be in default for not filing the tax deducted at source returns within the prescribed period. Further, it had also been recorded that the penalties under section 272A(2)(k) of the Act have rightly been imposed upon the appellant in all the three financial years. The assessee had failed to explain that there was any reasonable cause or failure to comply with the provisions of law and the authorities below had concurrently concluded that there was delay in filing the tax deducted at source returns without any justifiable reason or cause. 13. Adverting to the judgments in Executive Engineer and H.M.T. Ltd.'s....