Opinion Of Eminent Legal Luminaries On Controversial Issues

Whether Penalty U/s 272A(2)(c) Can Be Levied For Delayed Filing Of TDS Return?

QUERY: Where the assessee was in default in filing of return, though the T.D.S. was deposited in time, save himself from penalty u/s. 272A(2)(c)?
ANSWER: When TDS was deposited in time, there is no loss to the revenue. However, non filing TDS return is a technical default.
In Hindustan Steel Ltd. vs. State of Orissa [83 ITR 26]; the Supreme Court has held that, even if a minimum penalty is prescribed, the authority competent to impose the penalty will be justified in refusing to impose penalty, when there is a technical or venial breach of the provisions of the Act or where the breach flows from a bona fide belief that the offender is not liable to act in the manner prescribed by the statute.
However, from July 2012, if statement (return) is not submitted within the time prescribed under section 200(3) or under section 206C(3) of the Act, the assessee is liable to pay ` 200 per day by way of fee during which failure continues.

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