Non-Availability of Staff not an Excuse to avoid Penalty for Delay in Filing TDS Statement: ITAT [Read Order]

While upholding the penalty proceedings against the Delhi Development Authority Common Wealth Games 2010, the Delhi ITAT held that the assessee, being a Government Corporation cannot take a defence of change / non-availability of Staff for the delay in filing TDS Statement before the authorities.

In the instant case, the Assessing Officer imposed the penalty on the assessee as he found that the assessee did not file the quarterly statement within the prescribed date.

According to him, the assessee has not made out a case that the default was due to reasonable cause and observed that the delay was due to deliberate negligence on the part of the assessee and the negligence has no excuse in law.

During the course of the proceedings, the assessee submitted that the delay in submitting the TDS statement was due to change/shortage of staff and hence, not collecting correct PANs.

“In our opinion, simply because the assessee deposited the amount to the Government account, it will not go to mitigate the rigours of assessee’s failure to file the TDS statements within the stipulated time. Moreover, the assessee being a Government Organization is supposed to make strict compliance of law. The contention of the assessee is further not tenable that there is no loss to revenue due to the delay in filing the TDS statements, as the requisite TDS was deposited to the Govt. account in time,” the bench said while dismissing the second appeal filed by the assessee.

“It is significant to note that such an inordinate delay may cause loss to Revenue while processing the refunds, if any, to the deductees which fetches the substantial amount of interest to be paid by the Government on such refunds, if paid with delay. Moreover, the change /lack of staff with the assessee-organization is not found substantiated by any evidence on record and such a reason, in our considered opinion, does not constitute to be a reasonable cause to file the TDS statements with such an inordinate delay,” the bench said.