THE BOMBAY ST. XAVIERS COLLEGE SOCIETY, MUMBAI v. ADDL CIT (TDS) RG.3, MUMBAI

ITA 170/MUM/2009 | 2007-2008
Pronouncement Date: 29-03-2010 | Result: Allowed

Appeal Details

RSA Number 17019914 RSA 2009
Assessee PAN AAATT4549Q
Bench Mumbai
Appeal Number ITA 170/MUM/2009
Duration Of Justice 1 year(s) 2 month(s) 19 day(s)
Appellant THE BOMBAY ST. XAVIERS COLLEGE SOCIETY, MUMBAI
Respondent ADDL CIT (TDS) RG.3, MUMBAI
Appeal Type Income Tax Appeal
Pronouncement Date 29-03-2010
Appeal Filed By Assessee
Order Result Allowed
Bench Allotted B
Tribunal Order Date 29-03-2010
Date Of Final Hearing 26-03-2010
Next Hearing Date 26-03-2010
Assessment Year 2007-2008
Appeal Filed On 09-01-2009
Judgment Text
IN THE INCOME TAX APPELLATE TRIBUNAL MUMBAI BENCHES B MUMBAI BEFORE SHRI R.K.GUPTA JM AND SHRI R.S.SYAL AM ITA NO.169 & 170/MUM/2009 : ASST.YEAR 2006-2007 THE BOMBAY ST.XAVIERS COLLEGE SOCIETY 5 MAPALIKA MARG MUMBAI 400 001. PA NO.AAATT4549Q. VS. THE ADDL.COMMISSIONER OF INCOME-TAX (TDS) RANGE 3 MUMBAI. (APPELLANT) (RESPONDENT) APPELLANT BY : SHRI KETAN S.PATEL RESPONDENT BY : S/SHRI VIRENDRA OJHA & S.S.RANA O R D E R PER R.S.SYAL AM : THESE TWO APPEALS BY THE ASSESSEE ARISE OUT OF THE ORDERS PASSED BY THE COMMISSIONER OF INCOME-TAX (APPEALS) ON 3.10.2008 U PHOLDING THE PENALTY IMPOSED BY THE A.O. U/S.272A(2)(C) OF THE ACT IN RE LATION TO THE ASSESSMENT YEARS 2006-2007 AND 2007-2008. 2. BRIEFLY STATED THE FACTS OF THESE TWO APPEALS AR E THAT THE ASSESSEE APPLIED FOR LOWER DEDUCTION CERTIFICATE U/S.197 ON 13.6.2007 IN RESPECT OF RENT AND INTEREST. THE ADDITIONAL COMMISSIONER OF INCOME-TAX (TDS) NOTICED THAT THE ASSESSEE WAS REQUIRED TO FILE ITS TDS RETURNS IN FORM NOS.26Q AN D 24Q IN FOUR QUARTERS ON 15.7.2005 15.10.2005 15.1.2006 AND 15.6.2006 IN A SSESSMENT YEAR 2006-2007 AND ON 15.7.2006 15.10.2006 15.1.2007 AND 15.6.2007 I N ASSESSMENT YEAR 2007-2008. ON THE PERUSAL OF THE RECORDS IT WAS NOTED THAT THE ASSESSEE FILED SUCH TDS RETURNS BELATEDLY IN THE RANGE OF 16 TO 149 DAYS. ON BEING SHOW CAUSED AS TO WHY THE PENALTY U/S.272A(2)(C) BE NOT IMPOSED THE ASSESSEE STATED THAT IT WAS NOT AWARE OF THE TECHNICAL PROVISION OF THE INCOME-TAX ACT. NOT CONVINCED THE ADDL.CIT (TDS) IMPOSED PENALTY AMOUNTING TO RS.12 100 FOR ASSESSME NT YEAR 2006-2007 AND RS.21 900 FOR ASSESSMENT YEAR 2007-2008. IN THE FIR ST APPEAL IT WAS CONTENDED ON ITA NOS.169 & 170/MUM/2009 THE BOMBAY ST.XAVIERS COLLEGE SOCIETY. 2 BEHALF OF THE ASSESSEE THAT IT WAS A CHARITABLE TRU ST MANAGED AND RUN BY JESUIT PRIESTS BELONGING TO SOCIETY OF JESUS WHO WERE GENU INELY NOT AWARE OF THE VARIOUS TECHNICAL PROVISIONS. IT WAS ALSO CLAIMED THAT THE PROVISIONS FOR FILING QUARTERLY TDS RETURNS WERE INTRODUCED FOR THE FIRST TIME FROM FINANCIAL YEAR 2005-2006 AND THAT BEING THE FIRST YEAR THE TRUSTEES AND THE ACC OUNTANT WERE NOT AWARE OF THE ABOVE PROVISIONS. IT WAS ONLY DURING THE COURSE OF AUDIT THAT THE STATUTORY AUDITORS POINTED OUT THIS DEFICIENCY TO THE ASSESSEE AS A RE SULT OF WHICH THE QUARTERLY TDS RETURNS WERE FILED. THE LEARNED CIT(A) DID NOT ACCE PT THE ASSESSEES CONTENTION AND UPHELD THE PENALTY ORDERS. 3. AFTER CONSIDERING THE RIVAL SUBMISSIONS AND PERU SING THE RELEVANT MATERIAL ON RECORD IT IS NOTED THAT THE ASSESSEE IS A PUBLIC TR UST REGISTERED UNDER THE BOMBAY PUBLIC TRUST ACT 1950 RUNNING COLLEGE AT MUMBAI. T HERE WAS DELAY IN FILING FORM NOS. 26Q AND 24Q FOR BOTH THE YEARS UNDER CONSIDERA TION. THE REASON FOR THE DELAY WAS STATED AS IGNORANCE OF THE PROVISIONS IN THE BA CKDROP OF THE FACT THAT THE ASSESSEE A CHARITABLE TRUST WAS MANAGED BY THE J ESUIT PRIESTS WHO WERE NOT AWARE OF THE VARIOUS TECHNICAL PROVISIONS. ANOTHER REASON ADVANCED WAS ABOUT THE INTRODUCTION OF THE NECESSARY PROVISION FOR THE FIR ST TIME IN FINANCIAL YEAR 2005- 2006. NO REASON HAS BEEN ADVANCED BY THE AUTHORITI ES BELOW FOR NOT PAYING ANY ATTENTION TO SUCH SUBMISSIONS. THE LIABILITY U/S.27 2A(1)(C) IS NOT ABSOLUTE BUT IS SUBJECT TO THE PROVISIONS OF SECTION 273B WHICH SE CTION IN TURN PROVIDES THAT NO PENALTY SHALL BE IMPOSED IF THE ASSESSEE PROVES THA T THERE WAS A REASONABLE CAUSE FOR THE FAILURE. THE HONBLE SUPREME COURT IN THE CASE OF MOTILAL PADAMPAT SUGAR MILLS CO. LTD. VS. STATE OF U.P. & ORS. [(1979) 118 ITR 326 (SC)] HAS HELD THAT THERE IS NO PRESUMPTION THAT EVERY PERSON KNOWS THE LAW. COMING BACK TO THE PECULIAR FACTS PREVAILING IN THE INSTANT CASE WE FI ND THAT THE ASSESSEE HAD A REASONABLE CAUSE IN FILING THE TDS RETURNS BELATEDL Y. WE THEREFORE ORDER FOR THE DELETION OF PENALTY IN BOTH THE YEARS. ITA NOS.169 & 170/MUM/2009 THE BOMBAY ST.XAVIERS COLLEGE SOCIETY. 3 4. IN THE RESULT THE APPEALS ARE ALLOWED. ORDER PRONOUNCED ON THIS 29 TH DAY OF MARCH 2010. SD/- SD/- ( R.K.GUPTA ) ( R.S.SYAL ) JUDICIAL MEMBER ACCOUNTANT M EMBER MUMBAI : 29 TH MARCH 2010. DEVDAS* COPY TO : 1. THE APPELLANT. 2. THE RESPONDENTS. 3. THE CIT CONCERNED 4. THE CIT(A) - XXX MUMBAI. 5. THE DR/ITAT MUMBAI. 6. GUARD FILE. TRUE COPY. BY ORDER ASSISTANT REGISTRAR ITAT MUMBAI.