Case Law Details
Corrtech International Pvt. Ltd. Vs ACIT (ITAT Ahmedabad)
ITAT Ahmedabad held that there was delay in filing statement in Form 24Q/ 26Q due to heavy loss incurred by assessee. However, the same was filed before issuance of show cause notice and late payment of TDS was done along with interest. Hence, it shows that there was no mala fide intention on the part of the assessee for late filing of TDS return and hence penalty not leviable.
Facts-
AO levied penalty of Rs. 1,38,600/- U/s 272A(2)(g) of the Act on the count that assessee failed to file statements in Form 24Q / 26Q for F/Y. 2013-14 within the prescribed time limit. It was submitted that such penalty came to be confirmed by CIT(A) as well.
It was submitted that the “show cause notice” for levy of penalty u/s 272A(2)(g) was issued on 11.12.2014. The Assessee had filed all TDS returns (Form 24Q & 26Q) much before the issuance of show cause notice. This shows that there is no mala fide intention on the part of the assessee in filing TDS returns belatedly. The Ld. AR further submitted that there is a reasonable cause for delay in furnishing TDS returns. In any case, there is a reasonable cause for delay in filing statutory forms (Form 24Q & 26Q) within the prescribed time limit. The Ld. AR submitted that the Assessee incurred heavy losses (i.e. loss of Rs.62.88 crore) during the year under consideration. Thus, assessee was facing “liquidity crisis”.
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