INCOME TAX ACT, 1961

Section 272A(2)(k)

Penalty under section 272A(2)(k) - Delay in filing of TDS returns - -

Assessee deducted TDS for various quarters, during financial years 2009-10 and 2010-11, but submitted quarterly statements in Forms 4Q and 26Q beyond due dates. AO levied penalty under section 272A(2)(k). Assessee submitted that reason for delay in filing the returns was non-availability of accountant. Also, assessee was not able to mobilise of funds for business activity, due to ill health of managing director who was looking over finance and statutory payments. Assessee also submitted that, health of managing director did not stabilise up to 2012, and it was during the month of March 2012, due to kidney transplant surgery, he could not attend office to take necessary steps/actions in this regard. However, assessee deposited TDS with interest deducted for financial years 2009-10 and 2010-11, for all quarters with interest till the date of deposit. Held: For assessment year 2010-11, assessee filed 26Q return on 4-8-2010 and 24Q return was filed on 16-8-2010. For assessment year 2011-12, 26Q returns was filed on 5-5-2011 and 24Q was filed on 3-11-2011. From letter placed on record it was crystal clear that, new accountant took charge with assessee's office on 15-8-2010, therefore, reasoning that, assessee was unable to file returns, due to non availability of accountant could not be accepted atleast for assessment year 2011-12. However, considering illness of Managing Director, during relevant period, alternate submission of assessee to restrict penalty to be computed from date of payment of TDS amount to the credit of government, was accepted.

REFERRED :

FAVOUR : Partly in assessee's favour.

A.Y. : 2010-11 & 2011-12

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