Income Tax Appellate Tribunal - Chennai
Transcoastal Cargo & Shipping Limited, ... vs Jcit Tds Range 3, Chennai on 6 December, 2018
आयकर अपील य अ धकरण ,'बी' यायपीठ,चे नई
IN THE INCOME TAX APPELLATE TRIBUNAL
"B" BENCH, CHENNAI
ी एन.आर.एस .गणेशन, या यक सद य एवं
ी एस जयरामन, लेखा सद य के सम"
BEFORE SHRI N.R.S. GANESAN, JUDICIAL MEMBER AND
SHRI S. JAYARAMAN, ACCOUNTANT MEMBER
आयकर अपील सं/.I.T.A. No. 2980/Chny/2017
नधारण वष/Assessment Year : 2011-12
Transcoastal Cargo & Shipping Limited, Joint Commissioner of Income Tax,
1st Floor, LCatholic Centre, Vs. TDS Range -3,
64, Armenian Street, Parrys, Chennai - 600 006.
Chennai - 600 001.
[PAN: CHETO 2642D]
(अपीलाथ /Appellant) (#$यथ&/Respondent)
Assessee by : Shri. R.K.V. Sundar, Advocate
Revenue by : Shri. HariGovind, JCIT
सुनवाईक0तार ख/Date of Hearing : 04.12.2018
घोषणाक0तार ख/Date of Pronouncement : 06.12.2018
आदे श/ O R D E R
PER S. JAYARAMAN, ACCOUNTANT MEMBER:
The assessee filed this appeal against the order of Commissioner of Income Tax (Appeals)-17, Chennai in ITA No. 359/2014-15 dated 11.09.2017 for assessment year 2011-12.
:-2-: ITA No. 2980/Chny/2017
2. Transcoastal Cargo & Shipping Ltd., the assessee, filed E-TDS returns for all the quarters for assessment year 2011-12, belatedly. For this delay, the Joint Commissioner, TDS Range 3, Chennai levied penalty in total 1,47,125/- u/s. 272A(2)(k) dated 28.05.2014. Aggrieved, the assessee filed appeal before the CIT(A). The CIT(A) dismissed the appeal.
3. Against the order of the CIT(A), the assessee filed this appeal with the following grounds of appeal:
"1. The order of the Commissioner of Income Tax (Appeals) is opposed to the facts and circumstances of the case and law.
2. The Commissioner (Appeals) erred in confirming the order of the JClT levying penalty of Rs.147125/- u/s 272A(2)(k) of the Act for delay in filing of TDS Statements u/s 200(3) inspite of the explanation rendered by the appellant for such delay.
3. The Commissioner (Appeals) erred in not seeing that the appellant company though undergoing serious financial and administrative difficulties at the relevant time had deducted the TDS amounts and paid the same to the credit of the Government and the delay was in the filing of the e-TDS returns only.
4. The Commissioner (Appeals) erred in sustaining the penalty levied on technical reasons overlooking the fact that the appellant company's ships had been arrested, bank accounts frozen and all the staff had left the company, and the chartered accountant of the company was suffering from Brain tumour to which he succumbed resulted in inability to follow up the matter and hence the delay in filing of e-TDS returns occurred, which constituted a reasonable cause envisaged u/s 273B of the Act.
:-3-: ITA No. 2980/Chny/2017
5. For these and other Grounds that may be adduced at the time of hearing of the appeal the appellant prays that the Hon'ble Tribunal be pleased to cancel the penalty levied, allow the appeal and render justice."
4. The AR submitted though the assessee has filed returns belatedly, paid all the dues with returns and hence pleaded for deletion of penalty on the above grounds. Further, he invited our attention to the contents of the assessee's letter dated 21.05.2014 filed before the JCIT, the relevant portion is extracted as under:
"Transcoastal Cargo & Shipping Ltd (TCSL) was in financial difficulty ever since the Global meltdown of 2008.
The cash flow was very badly affected resulting in the closing down of commercial operations in the fy 2010-1:1.
During this period, I lost all my staff and was unable to carry out statutory duties in time.
Though the TDS was paid, to the department, sincerely regret the delay in filing and humbly request you to waive the penalty that is prescribed u/s 272A(2) of the Income Tax Act 1961."
and submitted that on these reasonable causes, the AO was requested not to levy penalty and thereafter pleaded before the Ld CIT(A) on various grounds. In spite of the above reasonable causes , unfortunately the Ld CIT(A) upheld the levy and hence pleaded to delete the same. Per contra, the Ld DR supported the orders of the lower authorities.
4. We heard the rival submissions and gone through relevant material. We find that the lower authorities have not disputed the facts canvassed :-4-: ITA No. 2980/Chny/2017 by the assessee, therefore, there were reasonable causes for non-levy of penalty and hence we direct that the impugned penalty be deleted. The assessee's appeal is allowed.
5. In the result , the assessee's appeal is allowed. Order pronounced on Thursday, the 06th day of December, 2018 at Chennai.
Sd/- Sd/-
(एन.आर.एस .गणेशन) (एसजयरामन)
(N.R.S. GANESAN) (S. JAYARAMAN)
या यकसद य/Judicial Member लेखासद य/Accountant Member
चे नई/Chennai,
th
5दनांक/Dated: 06 December, 2018
JPV
आदे शक0# त6ल7पअ8े7षत/Copy to:
1. अपीलाथ&/Appellant 2. #$यथ&/Respondent 3. आयकरआय:
ु त) अपील(/CIT(A)
4. आयकरआयु:त/CIT 5. 7वभागीय# त न ध/DR 6. गाड=फाईल/GF