Case Law Details
New India Assurance Co. Ltd. Vs JCIT (ITAT Kolkata)
We find that the fact of change of software from ‘Genesis’ to ‘CWISS’ Module by the assessee has not been disputed by the revenue in the instant case. It is quite natural that change of software would lead to various teething troubles which need to be addressed and plugged at the initial stage itself, so that the new Module could function smoothly later on. It is well known that migration to a new software would certainly result in lot of issues on accounting, accounting heads, etc which consumes considerable time for addressing the same. The assessee in the instant case had to undergo the same problems from October 2009 onwards , which had been duly stated by the senior branch manager of , Serampore Branch, vide letter dated 11.11.2011 , which fact is also acknowledged in the order of the ld CITA. The due date of filing the quarterly statement for the second quarter of financial year 2009-10 falls in October 2009 only. Hence we hold that the assessee was reasonably prevented from filing its quarterly TDS statements for 2ndand 3rdquarters of financial year 2009-10 with delay due to reasons beyond the control of the assessee.
We hold that the explanation offered by the assessee would constitute ‘reasonable cause’ within the meaning of section 273B of the Act and hence the assessee would be entitled for immunity from levy of penalty u/s 272A(2)(k) of the Act. Moreover, we find that there is absolutely no loss to the exchequer due to the delay committed by the assessee in filing the quarterly TDS statements as admittedly the entire TDS has been duly remitted within the prescribed time by the assessee to the account of the Central Government. Hence we hold that the assessee had committed only a technical venial breach , for which it should not be invited with penalty u/s 272A(2)(k) of the Act. Accordingly, the grounds raised by the assessee are allowed.
FULL TEXT OF THE ITAT ORDER IS AS FOLLOWS:-
1. This appeal is directed against the order of the learned Commissioner of Income Tax (Appeals) -24, Kolkata [in short the ld CITA] in Appeal No. 174/CIT(A)-24/Kol/2012-13 dated 9.5.2016 against the order passed by the JCIT (TDS) Range -58, Kolkata [in short the ld AO] levying penalty u/s 272A(2)(k) of the Income Tax Act, 1961 (hereinafter referred to as the ‘Act’) in the sum of Rs 94,200/- for the Asst Year 2010-11 dated 1.12.2011.
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