The Income Tax Appellate Tribunal (ITAT), Cuttack held that the none-availability of PAN of the deductee is not an excuse to escape from filing TDS.
The assessee filed the quarterly statements of TDS in Form Nos.24Q and 26Q of different quarters for the financial year 2007-2008. Since there was no reasonable explanation for the huge delay in filing the 24Q and 26Q statements, the JCIT(TDS) concluded that the penalty u/s.272A(2)(k) of the Act is leviable in the case of the assessee.
The bench includes Judicial Member, C.M Garg and Accountant Member L.P Sahu pronounced order based on an appeal filed by Mahanadi Coal Fields Limited.
Section 272A(2)(k) elaborates as Penalty for Failure to Answer Questions, Sign Statements, Furnish Information, Returns or Statements, Allow Inspections, Etc. if any person fails to deliver or cause to be delivered a copy of the statement within the time specified in sub-section (3) of section 200 or the proviso to subsection (3) of section 206C.
The Tribunal observed that the penalty is provided in the Income Tax provisions u/s.272A(2)(k) of the Act is mandatory in nature except in case of reasonable cause proved by the assessee, which is the lack in this case.
The bench observed that the assessee could not demonstrate that the assessee has furnished any reasonable cause for non-furnishing of PAN by the deductee so as to enable him to get the benefit of Section 273B of the Act and he has deducted TDS and deposited to the Government within the time with the prescribed authority.
While upholding the action of the CIT(A) and dismiss the grounds of appeal raised by the assessee the bench further stated that the assessee could not demonstrate that the assessee has furnished any reasonable cause for non-furnishing of PAN by the deductee so as to enable him to get the benefit of Section 273B of the Act and he has deducted TDS and deposited to the Government within the time with the prescribed authority.
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