2018 (9) TMI 289

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....erson responsible in the instant case has deducted and deposited TDS/TCS but failed to file the requisite return within the stipulated period. The due date of filing of e-TDS return in Form-24Q for F.Y. 2009-2010 was 15.06.2010 whereas return was filed on 06.07.2010. The due dates of filing of TCS returns in Form 27EQ were 15.07.2009, 15.10.2009, 15.01.2010 and 15.06.2010 for F.Ys. 2009-2010 and 15.07.2010, 15.10.2010, 15.01.2011 and 15.05.2011 for F.Y. 2010-2011 respectively. Total delay in filing e-TDS return was 21 days for Form 24Q and 689, 599, 509 and 359 days for Form 27EQ for first to fourth quarter for F.Y. 2009-2010 and 371, 276, 186, 66 days for first to fourth quarter for F.Y. 2010-2011. The A.O. accordingly levied the penalty u....

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....e to carry-out statutory obligation, yet, that by itself cannot be a ground for holding an assessee guilty. The penalty will be levied only in a case where the conduct is contumacious or dishonest or is in willful disregard of the statute. There could not be a penalty for any venial or technical breach of provisions. Bonafide mistake and plausible reasons cause penalty proceedings to be dropped. The assessee relied upon the decision of the Hon'ble Supreme Court in the case of Hindustan Steel Ltd., vs. State of Orissa 83 ITR 26 (SC). The belated filing of the Forms has not caused any damage or detriment to the Revenue. The taxes by way of TCS/TDS have been duly deducted and deposited in time and details have been duly given to the deductee. ....

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....d in conscious disregard of its obligation. Penalty will not also be imposed merely because it is lawful to do so. Whether penalty should be imposed for failure to perform a statutory obligation is a matter of discretion of the authority to be exercised judicially and on a consideration of all the relevant circumstances. Even if a minimum penalty is prescribed, the authority competent to impose the penalty will be justified in refusing to impose penalty, when there is a technical or venial breach of the provisions of the Act or where the breach flows from a bona fide belief that the offender is not liable to act in the manner prescribed by the statute." 5.1. Order of ITAT, Chandigadh Bench in the case of Collector Land Acquisition vs. Add....

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....) of the I.T. Act. Section 273B of the I.T. Act provides that no penalty shall be imposed on the person or the assessee as the case may be for any failure referred to in the said provision, if assessee proves that there was a reasonable cause for the said failure. It is an admitted fact that assessee deducted tax on time and deposited with the Revenue Department on time. There was only a technical or venial breach to the provisions contained above, requiring the assessee to submit the quarterly return statements of tax deducted at source within the time provided under the Law. It is not a case of the Revenue that assessee did not file the required statements with the Revenue Department. The requisite statement/returns have been filed belate....