Case Law Details
Jayaraj Charles Vs ITO (ITAT Chennai)
Introduction: The Jayaraj Charles Vs ITO case, adjudicated by ITAT Chennai, delves into the imposition of penalties under section 271B of the Income Tax Act. This particular case centres on the penalty confirmation for the Assessment Year (AY) 2017-18 due to the alleged failure of the assessee to upload a Tax Audit Report within the prescribed timeframe.
Analysis: The case evolved from the allegation that the assessee failed to upload the Tax Audit Report on time, leading to a penalty of Rs.1,50,000/- for AY 2017-18. Although the Tax Audit Report was obtained within the extended limit and presented during the assessment proceedings, the return was treated as non-existent (non-est) as it was not visible on the e-filing portal. This non-visibility led to the penalty being imposed on the assessee.
However, the ITAT Chennai acknowledged that substantial compliance with the law was made by the assessee. In light of this, the ITAT cited a previous case, Shri Ramunaicker Raja vs. ACIT, and ruled that this wasn’t a fit case for levy of the said penalty.
Conclusion: The ruling by ITAT Chennai in the case of Jayaraj Charles Vs ITO provides an important precedent, clarifying that no penalty should be imposed under section 271B of the Income Tax Act due to a return not appearing on the e-filing portal. It underlines the necessity for proper consideration of law compliance, even when technicalities, such as visibility on the e-filing portal, are in question.
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