TDS return :whether Penalty will be levied if PAN of Deductee not Mentioned ?

Failure to mention PAN of a few deductees in TDS return due to their non-availability won't invite penalty

IN THE ITAT DELHI BENCH 'SMC'

Income-tax Officer (TDS), Rohtak

v.

Executive Engineer

R.S. SYAL, ACCOUNTANT MEMBER

IT APPEAL NOS. 492 TO 495 (DELHI) OF 2014
[ASSESSMENT YEAR 2010-11]

JUNE  15, 2015 

No penalty imposable u/s 272B if deductor fails to mention correct PAN of a few deductees in quarterly e-TDS return Form 26Q which in fact were not available with deductor at the material time and deductor had nevertheless deducted TDS and deposited the same with Govt and obtained correct PAN numbers and filed revised statement on receiving show cause notice from the Department. These circumstances come within the scope of "reasonable cause" for non-compliance u/s 273B. Also, absent contumacious conduct, deductor entitled to relief in terms of Supreme Court's ruling in Hindustan Steel Ltd. v. State of Orissa [1972] 83 ITR 26