E.CHANDRAKALA,TIRUNELVELI V. INCOME TAX OFFICER, WARD 1, TIRUNELVELI

ITA 456/CHNY/2023

AI Insights

The case involves Smt. E. Chandrakala, an NRI employed in the USA, who was penalized for not filing her income tax return for the Assessment Year 2017-18. The Income Tax Officer (ITO) Ward-1, Tirunelveli, initiated penalty proceedings after assessing her income at Rs. 10 lakhs based on cash deposits in her bank account, which she claimed were savings from her parents. The assessee contested the penalty, arguing her lack of taxable income in India and her ongoing challenge against the quantum addition. The Tribunal, considering her employment abroad and the nature of the deposits, concluded that the penalty was not justified.

• Counselvise Citation: [2024] 140 COUNSELVISE.COM (IT) 472355 (ITAT-CHENNAI)
• Duration Of Justice: 1 year(s) 5 month(s) 29 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 09-10-2024
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: D
• Assessment Year: 2017-2018
• Appeal Filed On: 10-04-2023
• Laws Referred To: Section 271F, Section 139(1), Section 139(4), Section 144
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: R. ANITA LD.
• Section: 139(1)

Judgement Text

" आयकर अपीलीय अिधकरण “सी” \u000eा यपीठ चे\u0013ई म\u0016। IN THE INCOME TAX APPELLATE TRIBUNAL “C” BENCH, CHENNAI मा ननीय \u0019ी एबी टी. वक\u001f, \u000eा ियक सद\" एवं माननीय \u0019ी मनोज क ुमार अ'वाल ,लेखा सद\" क े सम)। BEFORE HON’BLE SHRI ABY T. VARKEY, JM AND HON’BLE SHRI MANOJ KUMAR AGGARWAL, AM आयकरअपील सं./ ITA No.456/Chny/2023 (िनधा*रण वष* / Assessment Year: 2017-18) Smt. E. Chandrakala 5/202, Near Police Station, Ambai Road East, Munneerpallam, Tirunelveli-627 356. बनाम/ Vs. ITO Ward-1 Tirunelveli. \u0002थायीलेखासं./जीआइआरसं./PAN/GIR No. AFWPC-0238-H (अपीलाथ\u001c/Appellant) : (\u001f थ\u001c / Respondent) अपीलाथ\u001cकीओरसे/ Appellant by : None \u001f थ\u001cकीओरसे/Respondent by : Ms. R. Anita ( Addl.CIT) -Ld. Sr. DR सुनवाईकीतारीख/Date of Hearing : 25-09-2024 घोषणाकीतारीख /Date of Pronouncement : 09-10-2024 आदेश / O R D E R Manoj Kumar Aggarwal (Accountant Member) 1. Aggrieved by confirmation of penalty u/s 271F for Rs.5,000/- for Assessment Year (AY) 2017-18, the assessee is in further appeal before us. Upon perusal of penalty order dated 14-01-2022 as passed by Ld. AO, it could be seen that the assessee did not file return of income by due dates either u/s 139(1) or u/s 139(4). An assessment was framed u/s 144 determining income of Rs.10 Lacs. The Ld. AO initiated penalty proceedings for non-filing of return of income and show-caused the assessee. The assessee submitted that it was in further appeal against 2 the said assessment order. However, rejecting the same Ld. AO levied penalty of Rs.5000/-. 2. During appellate proceedings, the assessee submitted that she was NRI and employed in USA since January, 2016. She had no taxable income In India and therefore, did not file the return of income. The addition of Rs.10 Lacs represents cash deposited in her bank account out of past salary savings by her parents. Further, the quantum addition was in further challenge. However, Ld. CIT(A) confirmed the same. Aggrieved, the assessee is in further appeal before us. 3. At the time of hearing, none appeared for the assessee. The Ld. Sr. DR pleaded for dismissal of the appeal. However, from the facts, it emerges that the assessee is a salary earner and employed outside India since January, 2016. For the aforesaid reasons, the cash deposits in her bank accounts for Rs.10 Lacs has been added in her hands on best judgment basis since the assessee could not attend assessment proceedings. The same is in further challenge before Ld. CIT(A). When the only source of income is salary earned from outside India, the assessee would be under bona-fide belief that her income was below taxable limit and there was no requirement for her to file the return of income. Therefore, in our considered opinion, this is not a fit case for levy of penalty. We delete the same. 4. The appeal stand allowed. Order pronounced on 9th October, 2024 Sd/- Sd/- (ABY T. VARKEY) (MANOJ KUMAR AGGARWAL) \u000eा ियक सद\" /JUDICIAL MEMBER लेखा सद\" / ACCOUNTANT MEMBER 3 चे4ई Chennai; िदनांक Dated :09-10-2024 DS आदेशकीJितिलिपअ'ेिषत/Copy of the Order forwarded to : 1. अपीलाथ\u001c/Appellant 2. \u001f थ\u001c/Respondent 3. आयकरआयु=/CIT Madurai. 4. िवभागीय\u001fितिनिध/DR 5. गाडBफाईल/GF "