Immunity From Penalty U/s. 271(1)(c) Available For Belated Returns

In our considered opinion, once the legislature has not specified the “due date” as provided in section 139(1) in Explanation 5A, then by implication, it has to be taken as the date extended under section 139(4). In view of the above, we hold that the assessee gets the benefit / immunity under clause (b) of Explanation to section 271(1)(c) because the assessee has filed its return of income within the “due date” and, therefore, the penalty levied by the Assessing Officer cannot be sustained on this ground. Even though we are not affirming the findings and the conclusions of the learned Commissioner (Appeals), however, as per the discussion made above, penalty is deleted in view of the interpretation of Explanation 5A to section 271(1)(c). Consequently, the ground raised by the Revenue is treated as dismissed.

INCOME TAX APPELLATE TRIBUNAL, “G” BENCH, MUMBAI
BEFORE SHRI RAJENDRA SINGH, ACCOUNTANT MEMBER

AND SHRI AMIT SHUKLA, JUDICIAL MEMBER

ITA No. 7737/Mum./2011 – Assessment Year: 2008-09)

Income Tax Officer (Central)

V/s

Mr. Gope M. Rochlani 

ORDER

PER AMIT SHUKLA, J.M.

The present appeal is preferred by the Revenue challenging the impugned order dated 30^th August 2011, passed by the learned Commissioner (Appeals)-I, Mumbai, in relation to the penalty proceedings under section 271(1)(c) of the Income Tax Act, 1961 (for short “the Act”), for the assessment year 2008-09. Following grounds have been raised by the Revenue:-