ITAT deletes Penalty against BCCI since Delay in e-filing of TDS Returns was due to Initial Glitches in the Online Portal [Read Order]

The Income Tax Appellate Tribunal (ITAT), Mumbai, while granting relief to the Board of Control for Cricket In India ( BCCI ) held that the penalty cannot be levied since the delay in filing TDS returns was due to glitches in the initial years of the switchover from the manual system to e-filing of quarterly TDS returns.

In the instant case, the Assessing Officer imposed a penalty under section 272A(2)(k) of the Income-tax Act, 1961 against the Board for not filing TDS returns within the stipulated time.

The assessee submitted that delay in filing of TDS quarterly returns took place because data was to be collected by the Board from various locations spread all over the country which required a lot of time. There were practical difficulties such as non-availability of staff in respective offices due to official travels etc, non-availability of PAN etc.

The Tribunal noted that it was for the Revenue to have allowed smooth switchover from manual to e-filing system of filing TDS returns. The onus and burden were on revenue to provide the necessary infrastructure so that tax-payer did not face any inconvenience in filing e-TDS returns. But as it is emerging from the historical factual matrix, the public at large faced lot of inconvenience in an initial stage of the switchover from manual to e-filing system of TDS returns due to several glitches.

“Thus, based on our above discussions outlined in details and conduct of the assessee keeping in view income-tax deducted at source were deposited in time and only filing of the TDS return was delayed in the initial years of switchover from manual system to e-filing of quarterly TDS returns, thus, we are of the considered view that the penalty of Rs. 46,200/- as is levied by AO and as confirmed by the Ld. CIT(A) u/s 272A(2)(k) in the instant case is not sustainable in the eyes of law as the assessee has shown a reasonable cause falling within parameters of Section 273B of the 1961 Act and we hereby order the deletion of the penalty of Rs. 46,200/- levied by the AO u/s 272A(2)(k) of the 1961 Act as was confirmed by learned CIT(A) by setting aside the orders of the authorities below,” the Tribunal said.