INCOME TAX ACT, 1961

Section 272A(2)(k)

Penalty under section 272A(2)(k) - Delay in furnishing of TDS statement begins from the date of depositing TDS into the Govt. Account - Liability -

AO imposed penalty under section 272A(2)(k) for belated filing of TDS statements under section 200(3), ignoring the submissions of the assessee that the delay was not intentional but rather technical one, attributed to non-availability of various necessary details from the deductees and that the delay should have been counted from the date of remitting the tax in the Govt. account, and not from the date of TDS. On appeal, CIT(A) confirmed the penalty order. Held: Penalty under section 272A(2)(k) is attracted where there is violation of section 200(3). Both the AO and the CIT(A) had failed to note that section 200(3) envisages that the period of filing statement of TDS begins from the date of paying the tax deducted to the credit of the Central Government within the prescribed time, as mentioned in Rule 31A(2). On perusal of records against the backdrop of the above-mentioned legal provisions, there is no delay on the part of the assessee, necessitating invoking of the provisions of section 272A(2)(k). In view of this, it was held that levy of penalty under section 272A(2)(k) was not justified and hence set aside. Consequently, the penalty levied under section 272A(2)(k) was deleted.

Followed :CIT v. Sri Ram Memorial Education Promotion Society. (2006) 150 Taxman 58 (All) : 2006 TaxPub(DT) 1434 (All-HC)

REFERRED :

FAVOUR : In assessee's favour

A.Y. : 2012-13

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