Case Law Details
Motor & General Finance Ltd. Vs ACIT (ITAT Delhi)
Introduction: The case of Motor & General Finance Ltd. Vs ACIT before the Income Tax Appellate Tribunal (ITAT) Delhi revolves around the imposition of penalty under section 271FA of the Income Tax Act. The central issue pertains to whether the penalty is justified when there are no reportable transactions.
Detailed Analysis: The assessee, Motor & General Finance Ltd., challenged the penalty levied under section 271FA of the Income Tax Act for failure to file a return/Statement of Financial Transaction (SFT) under section 285BA(1). The penalty was imposed despite the absence of any reportable transactions by the assessee.
The counsel for the assessee argued that the company, engaged primarily in leasing/renting immovable property, had only one reportable segment, as indicated in the Tax Audit Report. Furthermore, the Audit Report stated that the assessee was not required to furnish statements in Form No. 61, Form No. 61A, or Form No. 61B, affirming the absence of reportable transactions.
The Tribunal noted that neither the Assessing Officer nor the Commissioner of Income Tax (Appeals) identified any reportable transactions by the assessee. Additionally, it was observed that the penalty was levied disregarding the submissions and evidence provided by the assessee regarding the absence of reportable transactions.
Please become a Premium member. If you are already a Premium member, login here to access the full content.
Author Bio
