Case Law Details
Kanhaiya Lal Lalwani Vs ITO (ITAT Jaipur)
It is noted that the cost of acquisition of plot as per the assessee was Rs. 555/- purchased on 16-04-1999 and thereafter addition/ improvement of Rs.3,41,000/- was made. In my view, if these benefits were allowed to the assessee then in that eventuality the capital gain arose on the sale of immovable property could have been below taxable limit. It is noteworthy to mention that the provisions of Section 273B of the Income Tax Act, 1961 categorically mentions that penalty u/s 271F is not leviable in case the assessee proves that there was a reasonable cause for not filing the return of income during the year under consideration, as per provisions of Section 139 of the Act. After analyzing the facts of the present case, the Bench finds that AO has passed the assessment order ex-parte taking into consideration the assessee has not advanced any documents pertaining to sale of house in question. It is also noted from the record that the assessee is not having any taxable income and the AO has not given the benefit of indexed cost of acquisition and indexed cost of improvement on the immovable property in question and thus in that eventuality the capital gain arose on the sale of immovable property would have been below taxable limit. This plea of the ld. AR of the assessee in my view tantamounts to reasonable cause as is prescribed u/s 273B of the Act. While giving benefit of the same, the Bench deletes the penalty levied by the AO of Rs.5,000/-u/s 271F of the Act.
FULL TEXT OF THE ORDER OF ITAT JAIPUR
This appeal filed by the assessee is directed against order of the ld. CIT(A) dated 19-02-2021, National Faceless Appeal Centre, Delhi [ hereinafter referred to as (NFAC) ] for the assessment year 2011-12 wherein the assessee has raised the following ground of appeal.
‘’On the facts and in the circumstances of the case, the ld.CIT(A) has erred in confirming the penalty of Rs.5,000/-levied by the AO u/s 271F of the Act, notwithstanding the fact that the AO levied penalty without considering the written submission filed by the assessee on 18-03-2019, in compliance of show cause notice dated 6-03-2019 while the AO had specifically mentioned in the penalty order that no compliance was made.”
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