M/s. Punjab Cricket Association,, Mohali v. Addl. CIT,, Mohali

IN THE INCOME TAX APPELLATE TRIBUNAL CHANDIGARH BENCHES B CHANDIGARH BEFORE SHRI D.K.SRIVASTAVA ACCOUNTANT MEMBER AND MS SUSHMA CHOWLA JUDICIAL MEMBER ITA NO. 703/CHD/2010 ASSESSMENT YEAR: 2006-07 M/S PUNJAB CRICKET ASSOCIATION VS. THE ADDL. CIT RANGE MOHALI MOHALI PAN NO. AAATP3502C (APPELLANT) (RESPONDENT) APPELLANT BY : SHRI B.M.KHANNA RESPONDENT BY: SMT JAISHREE SHARMA ORDER PER SUSHMA CHOWLA JM THE APPEAL BY THE ASSESSEE IS AGAINST THE ORDER OF CIT(A) CHANDIGARH DATED 8.4.2010 RELATING TO ASSESSMENT YE AR 2006-07 AGAINST THE LEVY OF PENALTY UNDER SECTION 272A(2)(K) OF TH E I.T. ACT 1961. 2. THE ASSESSEE HAS RAISED THE FOLLOWING GROUND OF APPEAL:- THAT THE LD. CIT(A) HAS FAILED TO APPRECIATE THE F ACTS AND CIRCUMSTANCES OF THE CASE AND HAS THEREBY ERRED IN UPHOLDING THE LEVY OF PENALTY FOR LATE FILING OF TD S RETURN. 3. THE ONLY ISSUE RAISED BY THE ASSESSEE IN THIS AP PEAL IS AGAINST UPHOLDING THE LEVY OF PENALTY BY THE CIT(A) IMPOSE D U/S 272A(2)(K) OF THE ACT. 2 4. THE BRIEF FACTS OF THE CASE ARE THAT DURING THE FINANCIAL YEAR 2005- 06 THE QUARTERLY RETURN IN FORM NO. 26 FOR THE FIR ST QUARTER WAS DUE TO BE FILED ON 15.7.2005. THE ASSESSEE FILED THE SAME ON 2.9.2005 AFTER THE DELAY OF 49 DAYS. THE ASSESSING OFFICER HELD THE AS SESSEE TO BE IN DEFAULT AND LEVIED PENALTY @ RS. 100/- PER DAY TOTALING RS. 4900/-. IN APPEAL THE CIT(A) UPHELD THE ORDER OF THE ASSESSING OFFICER L EVING THE PENALTY U/S 272A(2)(K) OF THE ACT. 5. THE LD. AR FOR THE ASSESSEE POINTED OUT THAT TH IS BEING THE FIRST YEAR OF E-FILING OF TDS RETURN THERE WAS A DEFAULT IN FILING THE SAME WITHIN TIME AND THERE IS NO MERIT IN THE LEVY OF PE NALTY IN THE SAID CIRCUMSTANCES. THE LD. DR PLACED RELIANCE ON THE O RDERS OF THE AUTHORITIES BELOW. 6. WE HAVE HEARD THE RIVAL CONTENTIONS AND PERUSED THE RECORDS. THE ASSESSEE WAS TO FURNISH THE QUARTERLY RETURNS IN FO RM NO. 26Q BY 15 TH JULY 15 TH OCT 15TH JANUARY AND 15 JUNE OF THE SUCCEEDING YE AR. THE RETURN FOR THE FIRST QUARTER WHICH WAS DUE TO BE FI LED BY 15 TH JULY 2005 WAS IN FACT FILED ON 2.9.2005 I.E. AFTER A DELAY O F 49 DAYS. THE ASSESSEE ATTRIBUTES THE DELAY TO THE INTRODUCTION OF NEW SCH EME OF FILING THE TDS RETURN BY WAY OF E-FILING AND HENCE CLAIMS TO HAV E BEEN PREVENTED BY A REASONABLE CAUSE IN NOT FILING OF THE SAID TDS RETU RN WITHIN TIME. WE FIND MERIT IN THE EXPLANATION FILED BY THE ASSESSEE AND HOLD THAT THE ASSESSEE WAS PREVENTED BY A REASONABLE CAUSE IN NOT FURNISHI NG THE SAID TDS RETURN IN TIME. ACCORDINGLY WE DIRECT THE ASSESSING OFFIC ER TO DELETE THE PENALTY OF RS. 4 900/- LEVIED U/S 272A(2)(K) OF THE ACT. T HE GROUND OF APPEAL RAISED BY THE ASSESSEE IS ALLOWED. 3 ITA NO. 703/CHD/2010 7. IN THE RESULT APPEAL OF THE ASSESSEE IS ALLOWED . ORDER PRONOUNCED IN THE OPEN COURT ON THIS 18 TH DAY OF FEBRUARY 2011. SD/- SD/- (D.K.SRIVASTAVA) (SUSHMA CHOWLA) ACCOUNTANT MEMBER JUDICIAL MEMBER DATED : 18 TH FEBRUARY 2011 RKK COPY TO: 1. THE APPELLANT 2. THE RESPONDENT 3. THE CIT 4. THE CIT(A) 5. THE DR