Allowing the appeal of the assessee the Tribunal held that; the provisions of S. 272A to be read with the provisions of S. 273B which provides that notwithstanding anything contained in sub-section (2) of section 272A, no penalty shall be imposable for the failure referred to in the provisions, if reasonable cause is established for the failure. The change of accountant who was ignorant of the statutory provisions of tax deduction at source could be said to be reasonable cause so as not to warrant levy of penalty. Therefore there was a reasonable cause for not filing the prescribed returns within the time, and the Assessing Officer was directed to delete the penalty. (AY. 2011-12)
Investascent Wealth Advisors Pvt. Ltd. v. ACIT (2018) 65 ITR 604 (Bang.)(Trib.)
S. 272A : Penalty – Failure to answer questions – Sign statements – Furnish information -New accountant of assessee ignorant of statutory provisions of tax deduction at source-Reasonable cause- Levy of penalty is held to be not justified. [S. 272A(2)(k), 273B]