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Income Tax Appellate Tribunal - Delhi

Smv Agencies Pvt. Ltd., Delhi vs Addl. Cit, New Delhi on 11 July, 2018

                                                           ITA No. 1956/Del/2015


           IN THE INCOME TAX APPELLATE TRIBUNAL
                 DELHI BENCH: 'G' NEW DELHI

     BEFORE SHRI G.D. AGRAWAL, HON'BLE PRESIDENT
                           &
       SHRI K. NARASIMHA CHARY, JUDICIAL MEMBER

                     ITA No.-1956/Del/2015
                   (Assessment Year: 2006-07)
SMV Agencies Pvt. Ltd.            vs Addl. CIT
1862, Mahalaxmi Market,               Range-51,
Bhagirathi Place, Chandani Chowk,     New Delhi.
Delhi.
PAN No. AAACS3405J
APPELLANT                             RESPONDENT
        Assessee by                 None
        Revenue by                  Sh. K. Tewari, Sr. DR


                 Date of Hearing             11.07.2018
              Date of Pronouncement          11.07.2018

                                ORDER

PER K. NARASIMHA CHARY, J.M.

This is an appeal by the Assessee against the order dated 14.01.2015 of Ld. Commissioner of Income Tax (Appeals)- 41, ("Ld. CIT(A)) New Delhi relating to AY 2006-07.

2. This matter relates to the levy of penalty for late filing of the quarterly returns relating to second and third quarter of the F.Y. 2005-06. It was explained before the Ld.CIT (A) that the accounting staff of the assessee were not conversant with the newly introduced procedures and that is the reason why the delay occurred. However, the Ld. CIT (A) did not agree with such an explanation while dismissing the appeal.

3. On a perusal of the impugned order, we find that the Ld.CIT (A) acknowledged the fact that in the F.Y. 2005-06 filing of e-TDS return was introduced and there was a change from filing annual returns to quarterly returns. It is further stated that in respect of the first quarter also there occurred some delay. It is, therefore, clear that with the introduction of the e-TDS return filing and change from the filing of annual returns to quarterly returns the delay was caused. There is nothing unacceptable in the explanation of the assessee that the cause of delay was the non- acquaintance of the staff with the newly introduced procedures. In the circumstances, we are of the considered opinion that the violation in this respect is a venial breach of law and does not attract penalty proceedings in the very first year of introduction of the new procedures. We, therefore, delete the addition.

4. In the result, the appeal of the assessee is allowed accordingly.

Order pronounced in the open court on 11.07.2018 Sd/- Sd/-

  (G.D. AGRAWAL)                        (K. NARSIMHA CHARY)
    PRESIDENT                             JUDICIAL MEMBER
Dated: 11.07.2018
*Kavita Arora

Copy   forwarded to:
1.      Appellant
2.      Respondent
3.      CIT
4.      CIT(Appeals)
5.      DR: ITAT
                       TRUE COPY
                                                  ASSISTANT REGISTRAR
                                                   ITAT NEW DELHI



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                                                                                      ITA No. 1956/Del/2015



Date of dictation                                                          11.07.2018
Date on which the typed draft is placed before the dictating Member        11.07.2018

Date on which the typed draft is placed before the Other Member Date on which the approved draft comes to the Sr. PS/PS 11.7.18 Date on which the fair order is placed before the Dictating Member 11.7.18 for pronouncement Date on which the fair order comes back to the Sr. PS/PS 11.7.18 Date on which the final order is uploaded on the website of ITAT 11.7.18 Date on which the file goes to the Bench Clerk 11.7.18 Date on which the file goes to the Head Clerk The date on which the file goes to the Assistant Registrar for signature on the order Date of dispatch of the Order 3