Case Law Details
Sheel Agarwal Vs ITO (ITAT Delhi)
The Income Tax Appellate Tribunal (ITAT) Delhi heard an appeal filed by an 82-year-old widow against the penalty imposed under Section 271F for her failure to file an Income Tax Return (ITR). The appellant, a housewife, argued that she had no taxable income and never filed an ITR. The ITAT considered her age and financial situation while deciding on the penalty.
The ITAT examined the provisions of Section 271F, which mandates a penalty of Rs. 5,000 for failure to file an ITR within the relevant assessment year. However, the tribunal found that the appellant’s case did not warrant the application of this penalty. Considering her age, widowhood, and no history of taxable income, the ITAT concluded that Section 271F was not applicable to her.
The ITAT ruled in favor of the appellant and quashed the penalty imposed under Section 271F. The decision was based on the compassionate grounds of the appellant’s age and financial situation, highlighting the humane approach taken by the tribunal.
FULL TEXT OF THE ORDER OF ITAT DELHI
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