TaxTMI 
TaxTMI 
2017 (6) TMI 336
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....t the order of CIT(A) confirming the levy of penalty by the AO in violation of late submission of TDS monthly statements under section 272A(2)(k) of the Act levying penalty of Rs. 71,663/-. 3. Briefly stated facts are that the assessee filed quarterly statements of TDS under section 200(3) of the Act read with Rule 31 of the IT Rules 1962 as under: 4. As there was delay in filing of TDS statements due to the reason that it did not have PAN of the deductees and therefore was unable to upload the TDS returns on the system of the department. Hence, there was delay. The AO levied the penalty and CIT(A) confirmed the same. Before us, the learned Counsel filed a copy of Tribunals order in the case of State Bank of India vs. JCIT [2015] 56 t....
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.... credited to the Government account was not to be more than the penalty so levied. This clearly indicates that the case-laws as submitted by the learned Counsel of the assessee before us indicates that there is no less to the Revenue for attracting or levy of such penalty. ITAT, Cuttack Bench, in the case cited above, had clearly held that once the amount is deducted by identifying the deductee it was on the basis of obtaining the PAN of the deductee without which the information could not be uploaded in the electronic media which software was only available to the franchisees outsourced by the Department or the NSDL being the apex Nodal Agency. The learned DR has insisted that the proviso to Rule 31-A of the I.T.Rules clearly indicate that....
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.... of the e-TDS quarterly return, which was entrusted to an authorized service provider and the delay has occurred unintentionally. The assessee deductor is law compliant and the delay occurred only due to the reason that the assessee deductor is dependent on information of TDS and its deposit from the sub treasury of the Government and filing of e-return through the designated service provider of Income-tax Department. The assessee deductor has no technical competency to file the return by itself without external aid. The assessee is also not competent to do so by itself as per rule 37B and "Filing of Return of Tax deducted at source" scheme 2003, which requires the submission of quarterly statement through NSDL or other approved agencies i.....
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....e, penalty under sec. 272(A)(2) is not leviable and imposition of penalty is not justified for the reason that it was for the first time the requirement to convert the hard-copy into soft-copy was to be learnt by respective Government DDOs from the department officials. There is reasonable cause for delay in filing ETDS return U/s 273B. Considering the facts and circumstances of the cases in its entirety, we are of the considered view that the penalty so levied in the case of the assessee is not all justified. We, therefore, cancel the penalty levied u/s.272A(2)(k) for the assessee for the respective AYs as captioned in the cause title of this order by allowing the appeals under consideration." 5. As the facts and circumstances are exact....