By TIOL News Service

NEW DELHI, JUNE 26, 2018: THE ISSUE BEFORE THE BENCH is - Whether in absence of a reasonable cause, delay in filing the quarterly TDS statements by a govt organisation can be ignored merely because it has deposited the TDS amount to the govt account. NO is the answer.

Facts of the case:

The assessee, a statutory body created by the Delhi Development Act, 1957, to promote and secure development of Delhi, had returned income for the relevant AY. During the assessment proceeding, the AO noted that as per the provisions u/s 200(3) r/w Rule 31A, the assessee was required to file the quarterly TDS statement for each quarter by 15th July, 15th October, 15th January and 15th May of the year. However, the assessee failed to file the quarterly TDS statement for FY 2010-11 within the stipulated time period as provided u/s 206/206C r/w Rule 37. Therefore, SCN was issued to the assessee. In reply, the assessee admitted the default committed in filing the TDS statement, but requested for not imposing penalty. Nevertheless, the AO was of the opinion that the delay was due to deliberate negligence on the part of the assessee and such negligence had no excuse in law. Therefore, the AO completed the assessment after imposing penalty u/s 272A(2)(k). On appeal, the CIT(A) confirmed the action of the AO.

ITAT held that,

++ there is inordinate delay in filing the TDS statement in respect of 2nd and 4th quarter in filing Form 24Q and also in filing the TDS statement for Q2, Q3 and Q4. There is delay of 289 days in filing Form 24Q and 675 days in filing form No. 26Q. On perusal of the details of filing of TDS statement, it is seen that the delay is substantial ranging for almost more than one year. We are not inclined to subscribe the plea of the assessee that once, the TDS deducted was deposited within time, there was no loss to the Revenue. In our opinion, simply because the assessee deposited the amount to the Government account, it will not go to mitigate the rigors of assessee’s failure to file the TDS statements within the stipulated time. Moreover, the assessee being a Government Organization is supposed to make strict compliance of law. The contention of the assessee is further not tenable that there is no loss to revenue due to the delay in filing the TDS statements, as the requisite TDS was deposited to the Govt. account in time;

++ such an inordinate delay may cause loss to Revenue while processing the refunds, if any, to the deductees which fetches substantial amount of interest to be paid by the Government on such refunds, if paid with delay. Moreover, the change/lack of staff with the assessee is not found substantiated by any evidence on record and such a reason, in our considered opinion, does not constitute to be a reasonable cause to file the TDS statements with such an inordinate delay. The case laws relied by the assessee do not render any support to the assessee, as in the instant case we do not find a reasonable cause for filing the TDS statements with delay. In view of this, we find no infirmity in the order of the Lower Authorities in saddling the penalty against the assessee for the stated breach of law.

(See 2018-TIOL-953-ITAT-DEL)