Case Law Details
Sub Registrar Dhansura Vs DIT (ITAT Ahmedabad)
Appellant is a Govt. servant and ld. AR stated that they have assigned job to submit AIR to some outsources agency and sometime staff of the outsources agency become careless. In these case, appellant is a newly incumbent with the office and was not aware of the income tax provisions. Moreover, department authority did not inform in above said responsibilities of during the same. Moreover, income tax was paid on time therefore, no loss to the revenue.
In our considered opinion, appellant was having reasonable cause for delay filing on AIR and in our opinion benefit of section 273B should be given to the appellant. Therefore, we delete the penalty in all above said three appeals.
FULL TEXT OF THE ITAT ORDER IS AS FOLLOWS:-
These are three appeals by the appellant against the separate order of the Director of Income Tax (I&CI), Ahmedabad, 31/03/2016 for imposing of penalty u/s.271FA for Assessment Year (AY) 2015-16.
2. Since in all three appeals assessee are same and issues are common only amounts are different. Therefore, for the sake of convenience, we would like to dispose of all three appeals by way of a common order. Following grounds have taken by the department in all three appeals:
2.1 In ITA No.1427/Ahd/2016 for AY 2015-16:
“Penalty under 271 FA cannot be imposed if there is reasonable cause for delay in furnishing the annual information return.
As per the facts the delay is due to the person in charge was newly recruited and neither was aware of the income tax provision nor the departmental authority informed him about his responsibility of doing the same. This was a genuine fact for the delay and as soon as the assessee comes to know about his responsibility with respect to 285BA the said return has been filled within time specified in the notice.
As per order dated 30-3-2016 assessee was imposed with penalty u/s 271 FA (in case of failure to furnish annual information return) of Rs.100/- per day amounting to Rs.8500/-.
As the delay is due to reasonable cause and the same has been corrected by filling the return within the time specified in the notice hence the said penalty of Rs.8500 is to be deleted.”
2.2 In ITA No.1428/Ahd/2016 for AY 2015-16:
“Penalty under 271 FA cannot be imposed if there is reasonable cause for delay in furnishing the annual information return.
As per the facts the delay is due to the person in charge was newly recruited and neither was aware of the income tax provision nor the departmental authority informed him about his responsibility of doing the same. This was a genuine fact for the delay and as soon as the assessee comes to know about his responsibility with respect to 285BA the said return has been filled within time specified in the notice.
As per order dated 30-3-2016 assessee was imposed with penalty u/s 271 FA (in case of failure to furnish annual information return) of Rs.100/- per day for 107 days and thereafter continuous default Rs.500 for 59 days total amounting to Rs.40,200/-.
As the delay is due to reasonable cause and the same has been corrected by filling the return within the time specified in the 2nd notice hence the said penalty of Rs.40,200 is to be deleted.”
2.3 In ITA No.1429/Ahd/2016 for AY 2015-16:
“Penalty under 271 FA cannot be imposed if there is reasonable cause for delay in furnishing the annual information return.
As per the facts the delay is due to the person in charge was newly recruited and neither was aware of the income tax provision nor the departmental authority informed him about his responsibility of doing the same. This was a genuine fact for the delay and as soon as the assessee comes to know about his responsibility with respect to 285BA the said return has been filled within time specified in the notice.
As per order dated 30-3-2016 assessee was imposed with penalty u/s 271 FA (in case of failure to furnish annual information return) of Rs.100/- per day amounting to Rs.8,700/-.
As the delay is due to reasonable cause and the same has been corrected by filling the return within the time specified in the notice hence the said penalty of Rs.8,700 is to be deleted.”
3. The relevant facts as culled out from the materials on record are as under:-
In this case, it is seen from records that the assessee has filed AIR on 05/12/2015. Further in response to the said office of the DIT(I&CI) seen a letter dated 08/03/2016, the assessee has filed latter stating that he is having the charge of Sub-Registrar, Dhansura since 18/12/2014 and he is newly directly recorded and hence did not had any knowledge. Further, he was not provided any information from AIR from his office. He has filed the return and hence return will be filed in time in future. But ld. Director of income Tax (I&CI) was not agree with the plea of the appellant and imposed the penalty in Asst. Year 2015-16 in ITA No.1427/Ahd/2016 of Rs.8,500/-, in ITA No.1428/Ahd/2016 of Rs.40,200/- and in ITA No.1429/Ahd/2016 of Rs.8,700/-.
4. Now all three appeals are before us.
5. Appellant is a Govt. servant and ld. AR stated that they have assigned job to submit AIR to some outsources agency and sometime staff of the outsources agency become careless. In these case, appellant is a newly incumbent with the office and was not aware of the income tax provisions. Moreover, department authority did not inform in above said responsibilities of during the same. Moreover, income tax was paid on time therefore, no loss to the revenue.
6. In our considered opinion, appellant was having reasonable cause for delay filing on AIR and in our opinion benefit of section 273B should be given to the appellant. Therefore, we delete the penalty in all above said three appeals.
7. In the result, all three appeals filed by the appellants are allowed.
