Case Law Details
Sudhi Jain Vs ITO (ITAT Cuttack)
Assessee has filed her return of income at one place i.e. at Kolkata under her PAN A****2218B and the transactions done under PAN A****6846F are also duly reported and disclosed in the said return of income. No doubt has been shown by the revenue authorities on this contention of the assessee that the assessee has filed its return of income and also the assessee has substantiated the same by providing copies of the same to the revenue authorities during the assessment proceedings. Assessee has also taken the steps to surrender another PAN issued to her to show her bonafide intentions towards the tax compliance. Therefore, we are of the considered view that return of income was duly filed by the assessee and transaction under question were also disclosed which are subject to assessment by the AO, so penalty u/s 271F for failure to furnish the return of income u/s 139(1) of the act cannot be imposed on the assessee hence grounds of the assessee vide appeal no 90/CTK/2021 are decided in favour of the assessee, orders of the revenue authorities’ are set aside being against the principal of natural justice based on technicalities without proper consideration to the merits of the case. Thus, in our view penalty levied u/s. 271F of the Act is invalid
FULL TEXT OF THE ORDER OF ITAT CUTTACK
These two appeals by the assessee made against the order passed by the CIT(A), National Faceless Appeal Centre (NFAC), Delhi, dated 30.07.2021 for the assessment year 2017-2018.
2. Briefly facts of the case are that the appellant assessee is an individual having PAN AIGPJ6846F, was issued a notice u/s 142(1)(i) of the IT Act on 04.12.2017 for the AY 2017-18 (FY 2016-17) to furnish correct return of income for the impugned AY before 03.01.2018. On non response of the assessee the assessement was completed u/s 144 of the Act determining the total Income of the assessee at Rs. 48,80,520/-. Penalty proceedings U/s 271F for failure to file the return of Income within the assessement year, in response the assessee filed a petition for stay of penalty proceedings and to keep the demand in abeyance for PAN –ITA No.90&91/CTK/2021 ACXPJ2118B for the AY 2017-18. The AO observed that the 271F proceedings which were initiated on the assessee for PAN number AIGPJ6846F and not on against the pen ACXPJ2118B, assessee again requested to keep the proceedings under section 271F in abeyance till the disposal of appeal on verification it was observe by the AO that the assessee has not filed appeal under the PAN number AIGPJ6846F on which the penalty proceedings were initiated accordingly penalty under section 271F for Rs. 5000 was imposed by order dated 22/02/2020.
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