Grande Catering , Chandigarh vs Assessee

of ld. CIT(Appeals) Chandigarh dated 29.10.2014 for

assessment year 2012-13 (financial year 2011-12)

challenging the levy of penalty under section 272A(2)(k)

of the Income Tax Act.

2. The brief facts of the case are that the person

responsible had failed to file quarterly return in form No.

26Q in the 1st and 3rd quarter by respective due dates.

The assessee had not responded to the show cause

notices issued before levy of the penalty. The Assessing 2

Officer, accordingly levied the penalty under section

272A(2)(k) of the Act in a sum of Rs. 31,160/-.

3. The ld. CIT(Appeals) considered written submissions

of the assessee had also confirmed the levy of penalty

and dismissed appeal of the assessee.

4. We have heard ld. Representatives of both the

parties. There is no dispute that assessee has not filed

required TDS return in form No. 26Q for 1st and 3rd

quarter by respective due dates and there was a delay in

filing the TDS return. The assessee did not file any reply

to the show cause notice issued by the Assessing Officer

before levy of the penalty. Section 273B of the Income

Tax Act provides that no penalty shall be imposable on

the person or the assessee as the case may be, for any

failure referred to in Section 272A(2) of the Income Tax

Act, if he proves that there was reasonable cause for the

said failure. Admittedly, in the case of the assessee, the

assessee did not file any reply to the show cause notice

and did not explain any reasonable cause for failure to

comply with the provisions of law. Even before ld.

CIT(Appeals), no specific reasonable cause was explained

for failure to comply with the provisions of law. During

the course of arguments, the assessee has not put

forward any reasonable cause for failure to comply with

provisions of law. Thus, the assessee has defaulted in

making compliance of the provisions of law. The case of

the assessee, thus, does not fall within the exception to 3

the Rule, therefore, we are constrained to dismiss the

appeal of the assessee.

5. In the result, appeal of the assessee is dismissed.

Order pronounced in the Open Court on 19th

June,2015.

Sd/- Sd/- (T.R.SOOD) (BHAVNESH SAINI) ACCOUNTANT MEMBER JUDICIAL MEMBER Dated: 19th June,2015. 'Poonam' Copy to:

The Appellant, The Respondent, The CIT(A), The CIT,DR

Assistant Registrar ITAT Chandigarh