TaxTMI 
TaxTMI 
2018 (8) TMI 261
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...., Bangalore dated August 8, 2017 for the assessment year 2012-13 confirming the levy of penalty under clause (k) of sub-section (2) of section 272A of the Income-tax Act, 1961 (in short, "the Act"). 2. The appellant raised the following grounds of appeal: 1. The order of the Additional Commissioner of Income-tax (TDS) in levying the penalty of Rs. 1,43,108 under section 272A(2)(k) read with section 200(3) of the Income-tax Act, 1961 and that of the appeal order passed by the learned Commissioner of Income-tax (Appeals)- 13 are opposed to law and facts of the case. 2. The learned Commissioner of Income-tax (Appeals) is not justified in confirming the penalty of Rs. 1,43,108 levied by the Additional Commissioner of Income....
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....s of rendering advisory services on wealth management. During the financial year 2011-12, it was under obligation to deduct tax at source under the provisions of section 192 of the Act on the payment of salaries. The appellant-company had deducted TDS on salary payments and remitted the TDS amount to the Government account, where there is a delay in the remittance of the amount, it is stated that the appellant had voluntarily paid the interest on the belated remittances made to the Government account. But admittedly the appellant is in default in filing prescribed quarterly returns of TDS as prescribed under sub-section (3) of section 200 of the Act within the prescribed time. Hence the Additional Commissioner of Income-tax, Range-16, Banga....
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....ng of section 273B which include clause (c) and clause (d) of sub-section (2) of section 272A but does not include clause (k) of sub-section (2) of section 272A of the Act. Hence, the provisions of section 273B are not applicable to the penalty imposable under clause (k) of sub- section (2) of section 272A of the Act. In view of unambiguous provision of sub-section (3) of section 200 read with sub-rule (2) of rule 31A and section 273B of the Act, the undersigned does not find any infirmity in imposing the penalty under clause (k) of sub-section (2) of section 272A of the Act. The appeal is accordingly dismissed. Being aggrieved, the appellant is in appeal before us. 4. The learned counsel for the appellant vehemently su....
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....was explained to the TDS Officer stating that the delay had occurred on account of change of accountant who is ignorant of the provisions of the Act on the subject. This explanation was found to be not plausible by both the TDS Officer as well as the Commissioner of Income-tax (Appeals). However, the provisions of section 272A has to be read with the provisions of section 273B of the Income-tax Act, 1961 which provides that notwithstanding anything contained in sub-section (2) of section 272A of the Act, no penalty shall be imposable for the failure referred to in the said provisions, if it is proved that a reasonable cause is established for the said failure. Therefore the statute provides that if there is reasonable cause for the failure,....