Delay in filing e-TDS return due to default in Department Software wont attract penalty

Delay in filing e-TDS return due to technical default in software of department won't attract penalty on assessee

[2015] 56 taxmann.com 311 (Cuttack - Trib.)

IN THE ITAT CUTTACK BENCH

State Bank of India

v.

Joint Commissioner of Income-tax (TDS), Bhubaneswar

Section 272A of the Income-tax Act, 1961 - Penalty - For failure to answer question, sign statements etc. (Delay in filing statements) - Assessment years 2010-11 and 2011-12 - Assessee filed quarterly e-TDS statements in Form Nos. 24Q and 26Q for different quarters for relevant financial years - Assessing Officer taking a view that there was no reasonable explanation for delay in filing 24Q/26Q statements, imposed penalty under section 272A(2)(k) - It was noted that computer generated number for acknowledging receipt of such statements was not in hands of assessee insofar as generation of that number could not occur till such time PANs and information available on AS-26 were tallied by computer system itself - It was also undisputed that relevant software was only available to franchisees outsourced by department or NSDL being apex Nodal Agency - Whether on facts, delay in filing statements being beyond control of assessee, impugned penalty order deserved to be set aside - Held, yes [Para 7] [In favour of assessee]