The Regional Provident Fund Commissioner, Chandigarh v. Addl. CIT (TDS), Chandigarh

ITA 987/CHANDI/2013 | 2010-2011
Pronouncement Date: 29-04-2014 | Result: Allowed

Appeal Details

RSA Number 98721514 RSA 2013
Bench Chandigarh
Appeal Number ITA 987/CHANDI/2013
Duration Of Justice 6 month(s) 18 day(s)
Appellant The Regional Provident Fund Commissioner, Chandigarh
Respondent Addl. CIT (TDS), Chandigarh
Appeal Type Income Tax Appeal
Pronouncement Date 29-04-2014
Appeal Filed By Assessee
Order Result Allowed
Bench Allotted B
Tribunal Order Date 29-04-2014
Date Of Final Hearing 24-04-2014
Next Hearing Date 24-04-2014
Assessment Year 2010-2011
Appeal Filed On 11-10-2013
Judgment Text
IN THE INCOME TAX APPELLATE TRIBUNAL CHANDIGARH BENCHES B CHANDIGARH BEFORE SHRI T.R. SOOD ACCOUNTANT MEMBER AND SHRI SANJAY GARG JUDICIAL MEMBER ITA NO. 987/CHD/2013 ASSESSMENT YEAR: 2010-11 THE REGIONAL PROVIDENT FUND VS. THE ADDL. CIT(TDS ) COMMISSIONER CHANDIGARH CHANDIGARH PAN NO. PTLE10382B (APPELLANT) (RESPONDENT) APPELLANT BY : SHRI PRIKSHIT AGGARWAL RESPONDENT BY : SHRI J.S.NAGAR DATE OF HEARING : 24/04/2014 DATE OF PRONOUNCEMENT : 29.04.2014 ORDER PER SANJAY GARG JUDICIAL MEMBER THE PRESENT APPEAL HAS BEEN PREFERRED BY THE ASSESS EE AGAINST THE ORDER DATED 9.7.2013 OF LD. CIT(A) CHANDIGARH. 2. THE ASSESSEE IS AGGRIEVED AGAINST THE CONFIRMATI ON OF PENALTY WHICH WAS LEVIED BY THE ASSESSING OFFICER U/S 272A(2)(K) OF T HE INCOME TAX ACT. 3. THE BRIEF FACTS OF THE CASE ARE THAT THE ASSESSE E HAD FAILED TO FILE QUARTERLY TDS RETURN BY DUE DATE. WHEN CALLED FOR AN EXPLANA TION IN THIS RESPECT THE ASSESSEE SUBMITTED BEFORE THE ASSESSING OFFICER THA T THE DELAY IN FILING THE TDS WAS NOT INTENTIONAL BUT THE ASSESSING OFFICER WAS N OT SATISFIED WITH THE EXPLANATION GIVEN BY THE ASSESSEE HENCE HE LEVIED A PENALTY OF RS. 1 55 474/- U/S 272A(2)(K) OF THE ACT. 2 4. IN FIRST APPEAL THE LD. CIT(A) CONFIRMED THE PE NALTY SO LEVIED BY THE ASSESSING OFFICER. 5. AGGRIEVED AGAINST THE ORDER OF CIT(A) THE ASSES SEE IS THUS IN APPEAL BEFORE US. 6. WE HAVE HEARD THE LD. REPRESENTATIVES OF BOTH TH E PARITIES. 7. THE LD. AR OF THE ASSESSEE WHILE RELYING UPON AN AFFIDAVIT OF MR. SUBHASH ARORA ASSISTANT PROVIDENT COMMISSIONER OF THE ASSESSEE ORGANIZATION HAS SUBMITTED THAT THE ASSESSEE ORGANIZATION HAD NO T MADE ANY DEDUCTION OF TDS IN RESPECT OF PAYMENT OF NON SALARY NATURE FOR THE LAST FIVE YEARS. SO THE STAFF OF THE ORGANIZATION WAS NOT CONVERSANT REGARDING THE R EQUIREMENT OF THE PROVISIONS OF THE SUB SECTION (3) OF SECTION 200 AND PROVISO T O SUB SECTION (3) TO SECTION 206C OF THE ACT REQUIRES THE FILING OF STATEMENT OF TDS DEDUCTED WITHIN THE STIPULATED POINT OF TIME. IT HAS BEEN FURTHER AVERR ED IN THE SAID AFFIDAVIT THAT THE TDS DEDUCTED WAS DEPOSITED WITHIN TIME BUT ONLY THE QUARTERLY STATEMENT WAS DELAYED. THE LD. AR OF THE ASSESSEE HAS FURTHER SUB MITTED THAT THERE WAS SHORTAGE OF STAFF WITH THE ASSESSEE ORGANIZATION AL SO. SINCE IT WAS THE FIRST YEAR AFTER A GAP OF ABOUT 5- 6 YEARS AND HENCE THE OMISS ION IN NOT FILING THE STATEMENT IN TIME WAS NOT INTENTIONAL RATHER BECAUSE OF THE A BOVE REASONABLE CAUSE. 7. ON THE OTHER HAND THE LD. DR HAS RELIED ON THE FINDINGS OF THE AUTHORITIES BELOW. 8. WE HAVE CONSIDERED THE RIVAL SUBMISSIONS OF BOTH THE REPRESENTATIVES OF THE PARTIES. WE ARE SATISFIED THAT THE EXPIATION G IVEN BY THE LD. AR OF THE ASSESSEE THAT DELAY IN FILING THE QUARTERS STATEMEN T WAS NOT INTENTIONAL BUT BECAUSE OF THE FACTS AS NARRATED ABOVE. THE AVERME NTS OF THE ASSESSEE HAVE BEEN 3 DULY SUPPORTED WITH THE AFFIDAVIT OF THE ASSISTANT COMMISSIONER OF THE ASSESSEES ORGANIZATION. IN OUR VIEW THE CASE EXP LAINED BY THE ASSESSEE IN FILING THE QUARTERLY STATEMENT LATE FALL WITHIN THE DEFINITION OF REASONABLE CAUSE AS PROVIDED U/S 273B OF THE ACT. ACCORDINGLY THE PENALTY SO LEVIED BY THE LOWER AUTHORITIES IS HEREBY ORDERED TO BE DELETED. 9. IN THE RESULT THE APPEAL OF THE ASSESSEE IS ALL OWED. ORDER PRONOUNCED IN THE OPEN COURT ON 29/04/2014 SD/- SD/- (T.R. SOOD) (SANJAY GARG) ACCOUNTANT MEMBER JUDICIAL MEMBER DATED : 29 TH APRIL 2014 RKK COPY TO: 1. THE APPELLANT 2. THE RESPONDENT 3. THE CIT 4. THE CIT(A) 5. THE DR