The Commissioner Of Income Tax-Tds, Mumbai v. M/S. Ims Ship Management Ltd

IN THE HIGH COURT OF JUDICATURE AT BOMBAY ORDINARY ORIGINAL CIVIL JURISDICTION INCOME TAX APPEAL NO. 409 OF 2006 The Commissioner of Income Tax-TDS,Mumbai..............Appellant. VersusM/s. IMS Ship Management Ltd. ........Respondent. Mr. Avinash D. Kango, APP for the Appellant.None for the Respondent. CORAM :BILAL NAZKIandS. S. SHINDE, JJ.DATED :27TH JUNE, 2008. P.C.: Penalty was levied on assessee on account of delay in issuing TDSCertificate. It was not disputed that the tax deducted was duly paid to theGovernment account and there was no loss to the revenue. The Tribunalfound that delay in issuance of TDS Certificate was technical default andreduced the penalty which was imposed in terms of Section 272(A)(2). Thequestion has been framed in the appeal to suggest that there is no discretionwith the authority to reduce the penalty under Section 272(A)(2) as theSection lays down that a penalty of Rs.100/- per day during the failurecontinues. 2.We have, however, found that submitting delayed TDS Certificate doesnot fall within any of the clauses (a) to (l) of Section 272(A)(2). Therefore,in our view, under this provision no penalty could have been imposed uponthe assessee. As such no question arises. The appeal is, accordingly,dismissed. Sd/- (BILAL NAZKI, J.) Sd/- (S. S. SHINDE, J.)