TaxTMI 
TaxTMI 
2018 (3) TMI 145
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....inancial Year 2010-11. Aggrieved by the order dated 17-12-2012 levying penalty u/s. 272A(2)(k)/274 r.w.s. 200(3) of the Act, the assessee filed appeal before the Commissioner of Income Tax (Appeals). The reason given by assessee for delay in filing the quarterly return is that the assessee is not conversant with the e-filing of various forms newly introduced by the Department. The Commissioner of Income Tax (Appeals) rejected the reason given by assessee on the ground that under the provisions of section 273B penalty levied u/s. 272A(2)(k) cannot be waived even on furnishing of sufficient cause. Against the findings of Commissioner of Income Tax (Appeals) the assessee is in second appeal before the Tribunal. 3. The notice of appeal for appearance before the Tribunal on 26-02-2018 was sent to the assessee through RPAD on the address mentioned in Form No. 36. The notice was duly served as is evident from the acknowledgment available on file. Despite service of notice none has appeared on behalf of the assessee nor there is any request seeking adjournment on behalf of the assessee. Therefore, we are proceeding to decide the appeal with the assistance from ld. DR and the material....
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....n the present set of appeals before us admittedly, there was default in furnishing eTDS statements late for the respective quarters by different assessee, but all relating to assessment year 2011-12. The question which arises for adjudication before us is whether in such cases where e-TDS was made compulsory for the instant assessment year and where the software was not user-friendly and required amendments at the end of the Government itself from time to time and the compliance being a complex procedure introduced for the first time and where originally the deductors were not default in depositing the paper TDS returns, does the assessee deductor have reasonable cause for not furnishing the said e-TDS returns in time. In this regard, reference is to be made to the provisions of section 273B of the Act, where it has been provided that in case a person establishes or proves that he had reasonable cause for the failure to comply with the provisions of various sections provided in section 273B of the Act, then no penalty shall be imposable on such person for the said failure. Reading of section 273B of the Act shows that under it, the Section refers to along with many other sections c....
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....pra). One last aspect pointed out by the learned Authorized Representative for the assessee was that the CIT(A) has acknowledged that there was reasonable cause in not furnishing e-TDS returns in time. However, no benefit of the same was given to the assessee because the CIT(A) was of the view that the provisions of section 273B of the Act do not cover penalty leviable under section 272A(2)(k) of the Act. 23. First of all, we shall deal with the last submissions of the assessee that under the provisions of section 273B of the Act, the provisions of section 272A(2)(k) of the Act are referred and in case the person establishes its case of reasonable cause, then no penalty is to be leviable for such defaults. The case put up by the assessee was that where tax was deducted at source and merely because e-TDS statements / returns were not filed in time does not result in any loss of revenue and hence, no merit in levy of penalty under section 272A(2)(k) of the Act. The claim of deduction of tax deducted at source, its payment to the Treasury to the Government and thereafter, the credit to be allowed to the deductee of tax deducted from his account, all work on the principle that....
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....he delay in furnishing the tax deduction certificate was held to be merely technical or venial in nature and penalty levied under section 272A(2)(k) of the Act was deleted. It may be clarified herein that earlier under section 272A(2)(k) of the Act, penalty was leviable where the tax deduction certificate was not issued in time. However, by Finance (No.2) Act, 2004 w.e.f. 01.04.2005, it has been provided that where a person fails to deliver or cause to be deliver copy of statement within time specified in section 200(3) of the Act or the proviso to section 206C(3) of the Act, then he shall pay by way of penalty sum of Rs. 100/- for every day of default. It is further provided under the said subsection that the amount of penalty for failure shall not exceed the amount of tax deductible or collectable, as the case may be. It is further provided that no penalty shall be levied under clause (a) for failure to furnish the statement under section 200(3) of the Act or proviso to section 206C(3) of the Act, on or after first day of July, 2012. 25. ............... 26. ............... 27. ............... 28. On the other hand, various Benches of Tribunal h....