The Income Tax Appellate Tribunal (ITAT), Jodhpur Bench, has recently, in an appeal filed before it, on account of non- submission of TDS statement due to reasonable cause, upheld the deletion of income tax penalty.
The aforesaid observation was made by the Jodhpur ITAT, when an appeal was preferred before it by the Revenue, as against the order of the CIT(A), Udaipur, dated 07-08-2019, for the assessment year 2011-12.
The ground of the Revenue’s appeal being as to whether in the facts and circumstances of the case and in law, the CIT(A) has erred in deleting the penalty levied under section 272(A)(2)(k) of the Income Tax Act, 1961, levied by the Jt.CIT(TDS)/AO, Udaipur for failure to file of TDS statement, within the time specified in sub-section (3) of Section 200 of Income Tax Act, 1961, for F.Y. 2010-11 (A.Y. 2011-12) (Quarter-2nd) in contrary to proviso to proviso to sub-clause (k) of Section 272(A)(2) inserted by the Finance Act 2012 w.e.f. 01-07-2012, holding that the order u/s 272A(2)(k) of the Act, issued by the AO/Jt.CIT(TDS) on 8-04-2013 is barred by limitation, the brief facts of the case were that the AO had imposed a penalty, holding that there was no reasonable cause for the late filing of TDS quarterly statement.
The appellant has argued that there was a reasonable cause for delayed filing of TDS statement as tax was deposited in time but due to unavoidable reasons, TDS statement could not be submitted in time, therefore, penalty under Section 272A(2)(k) should not be imposed.
In appeal, the CIT(A) passed an order in favour of the assessee, deleting the penalty, and it is being aggrieved by the same that the Revenue has preferred the instant appeal before the Tribunal.
With no appearance when the case is called for, on behalf of the assessee, the ITAT therefore decided to adjudicate the appeal with the assistance of Shri S.M. Joshi, the JCIT-DR, observing as follows:
“We have heard the ld DR who has relied upon the order of the AO. It is noticed that ld. DR except relying upon the order of the AO has not advanced any arguments to controvert the findings of the ld. CIT(A).”
“In this way, we find that the ld. CIT(A) has passed the reasoned order deleting the penalty by considering that since amendment has been brought in by Finance Act, 2012 inserting Second Proviso to Section 272A (2) of the Act providing w.e.f. 01-07- 2012, penalty is not leviable under section 272A(2)(k) of the Act”, the coram of Khul Bharat, the Judicial Member, and Manish Borad, the Accountant Member added.
Thus, the ITAT finally held:
“Thus, the AO’s order dated 5-03-2013 is not maintainable. Therefore, the grounds raised by the Revenue are dismissed”.
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