Non-furnishing of PAN by payee caused delay in filing of e-TDS return, penalty for such late filing not to be levied

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INCOME TAX APPELLATE TRIBUNAL CHANDIGARH

ITA Nos. 1226 to 1229/Chd/2011

Assessment Years: 2007-08 to 2010-11

The Collector Land Acquisition, Vs Addl. CIT(TDS)

Date of Pronouncement : 09.03.20 12

It is an admitted fact that the amount of tax deducted at source by the assessee (Person Responsible) was paid within the limit under the relevant provisions of the Income Tax Act, 1961. There was only a technical and venial breach to the provisions contained in Rule 31A(2) of the Income Tax Rules, 1962 requiring the assessee to submit quarterly returns statement of Tax Deducted at Source which were required to be filed on due date as per section 200(3) of the I.T. Act. As regards the delay in submitting TDS returns, it was explained by the assessee that due to non-furnishing of PAN numbers, the TDS certificate could not be filed in time, but the tax was deducted in time and deposited with the government account. It is also explained that the Collector Land Acquisition, Department of Industries is a Government Organization. The Organization is acquiring land on behalf of Punjab Government. The Land Compensation is paid by the Organization to the land owners through the District / High Courts. The TDS is deducted at source on the interest payment to the land owners. But the compensation and interest is deposited in the Court and not paid directly to the land owners. It is also explained that generally the land owners / agriculturists do not have PAN numbers. The Department was not able to find PAN numbers of these land owners. It is also explained by the assessee that the Department has issued letters to individual land owners for PAN numbers at the available address but no response was received due to improper addresses. However, it is also explained that as the PAN numbers were not provided by the duductees, so the e-TDS returns could not be filed in time. In our view, the assessee has satisfactorily explained the reasons regarding non filing of TDS returns in time, therefore, no penalty should be levied in these cases. Even otherwise also, the assessee did not derive any benefit whatsoever by not filing the e-TDS returns in time, as the amount of TDS was duly deposited in the government treasury within prescribed time. Such delay has not caused any loss to the Revenue / Income Tax Department.