Section 271BA: No Penalty for bonafide failure in filing of Form No. 3CEB

Shree Ram Dass Rice & General Mills Vs DCIT (ITAT Chandigarh) A perusal of Section 271BA shows that the law makers have used the words “may” and not “shall”, thereby making their intentions clear in as much that levy of penalty is discretionary and not automatic. The said conclusion is further justified by Section 273B of the Income Tax Act, 1961. A careful reading of Section 273B encompasses that certain penalties “shall” not be imposed in cases where reasonable cause is successfully pleaded. It is seen that penalty imposable u/s 271BA is included therein. By the said provisio...