Kanubhai Ishwarbhai Rabari, Ahmedabad V. Income Tax Officer, Ward-4(2)(2), Ahmedabad

ITA 294/AHD/2022

• Counselvise Citation: [2022] 103 COUNSELVISE.COM (IT) 9985 (ITAT-AHMEDABAD)
• Duration Of Justice: 2 month(s) 24 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 20-10-2022
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Next Hearing Date: 16-10-2022
• Assessment Year: 2011-2012
• Appeal Filed On: 26-07-2022
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Bonafide belief
• Section: 147; 148; 144

Judgement Text

आयकर अपीलीय अिधकरण आयकर अपीलीय अिधकरणआयकर अपीलीय अिधकरण आयकर अपीलीय अिधकरण, अहमदाबाद 瀈यायपीठ अहमदाबाद 瀈यायपीठअहमदाबाद 瀈यायपीठ अहमदाबाद 瀈यायपीठ, अहमदाबाद अहमदाबादअहमदाबाद अहमदाबाद । ।। । IN THE INCOME TAX APPELLATE TRIBUNAL “SMC” BENCH, AHMEDABAD ] ] BEFORE MS. SUCHITRA KAMBLE, JUDICIAL MEMBER ITA No.294/Ahd/2022 Assessment Year : 2011-12 Kanubhai Ishwarbhai Rabari Jogni Mata Ni Chali Nr.Navsankar Hindi School Chanakyapuri Road, Ghatlodia Ahmedabad Vs The ITO Ward-4(2)(2) Ahmedabad PAN: AIXPR 1848 N / (Appellant) / (Respondent) Assessee by : -None- Revenue by : Shri Ravindra Bokde, CIT-DR /Date of Hearing : 17 /10/2022 /Date of Pronouncement: 21 /10/2022 आदेश/O R D E R This appeal is filed by the Assessee against the order dated 11/06/2019 passed by the Commissioner of Income-tax (Appeals)-4, Ahmedabad [“CIT(A)” in short] for Assessment Year 2011-12. 2. Grounds of appeal are as under: That the learned Commissioner of Income Tax (Appeals), National Faceless Appeal Centre has erred in law and facts confirming the penalty under section 271F of Rs.5,000/- and therefore the penalty levied is required to be deleted and accordingly the ld.AO be directed. That in view of the above facts and grounds of appeal, the appellant be granted stay for payment of penalty till the decision of the appeal. ITA No. 294/Ahd/2022 Kanubhai Ishwarbhai Rabari vs. ITO AY 2011-12 2 3. The assessee was identified as non-filer in the NMS [Non-Filer Management System]. There was AIR information in respect of the assessee on the ITD system for the year under consideration and the assessee did not file his return of income for A.Y. 2011-12. The AIR information on the ITD systems in respect of the assessee was that assessee had purchased immovable property of Rs. 84,13,000/- during the year under consideration. In view of the above backdrop, the case was reopened and notice u/s 148 of the Income Tax Act, 1961 was issued on 26.03.2018. The assessee did not file his return of income for A.Y. 2011-12 till the date of assessment finalized in the case of the assessee. Assessment order u/s 144 r.w.s. 147 of the Income Tax Act, was passed on 11.12.2018 and penalty proceedings u/s 271F of the Act were also levied for non-filing of return of income amounting to Rs. 5,000/-. 4. Being aggrieved by the penalty order u/s 271F of the Act, the assessee filed appeal before the CIT(A). The CIT(A) dismissed the appeal. 5. At the time of hearing, none appeared on behalf of the assessee. Notice of hearing was issued on 21.09.2022 which was duly served on the assessee. The acknowledgement receipt dated 30.09.2022, is there on record. Therefore, we are proceeding on the basis of the submissions of the assessee reproduced by the CIT(A) in the order dated 30.05.2022. 6. The Ld. DR submitted that the assessee failed to file the return despite the issuance of notice u/s 148 of the Act. Thus, the penalty imposed u/s ITA No. 294/Ahd/2022 Kanubhai Ishwarbhai Rabari vs. ITO AY 2011-12 3 271F is just and proper. The Ld. DR relied upon the penalty order and order of the CIT(A). 7. Heard Ld. DR and perused all the relevant material available on record. It is pertinent to note that the assessee submitted before the CIT(A) that he is agricultural land holder and derives no other income other than agriculture income. Besides this the assessee submitted that the consideration for purchase of land of Rs. 84,13,000 is paid out of savings of the assessee’s family from agricultural activities carried on since years and out of loan from assessee’s relatives and friends who are agriculturists. The assessee submitted that the assessee was not aware of the provisions of the Act and he was under bonafide impression that he is deriving income only from agricultural activities and therefore is not liable to pay income tax. Though the CIT(A) has considered the decisions of the Tribunal in case of Mrs. Manju Kataruka vs. ITO (2005) 94 TTJ Kol 873 wherein the assessee therein sold the property and in case of Arjun Dada Kharate vs. DCIT (ITA No. 1594/PUN/2017 order dated 10.08.2020) wherein the assessee therein was agriculturist and facing financial problems who sold agricultural land, the CIT(A) observed that the said case laws are not identical. But in the present case the assessee has established that he was under bonafide belief that being agriculturist, he does not have to file return of income. Besides this the assessee has also explained that the funding of purchase of land despite non filing of the return of income to the Assessing Officer. This is not a fit case for mandatory filing of return of income as the assessee is agriculturist. This fact was not denied by the Assessing Officer as well. Therefore, the penalty u/s 271F does not survive. The appeal of the assessee is allowed. ITA No. 294/Ahd/2022 Kanubhai Ishwarbhai Rabari vs. ITO AY 2011-12 4 8. In result, appeal of the assessee is allowed. Order pronounced in the Court on 21 st October, 2022 at Ahmedabad. Sd/- (SUCHITRA KAMBLE) JUDICIAL MEMBER Ahmedabad, Dated 21 /10/2022 . ी. य , . . ./T.C. NAIR, Sr. PS ! "# /Copy of the Order forwarded to : 1. "!ी $% / The Appellant 2. &य$% / The Respondent. 3. '(')* य य + / Concerned CIT 4. य य + )"!ी (/ The CIT(A)-4, Ahmedabad 5. . /ीय )* , य "!ी य ")* , ज /DR,ITAT, Ahmedabad, 6. / 12 3 /Guard file. / BY ORDER, &य ! //True Copy// ह य !'जी (Asstt. Registrar) य "!ी य ")* , ITAT, Ahmedabad 1. Date of dictation (word processed by Hon’ble JM in her computer) : 19.10.22 2. Date on which the typed draft is placed before the Dictating Member. : 20.10.22 3. Date on which the approved draft comes to the Sr.P.S./P.S : 4. Date on which the fair order is placed before the Dictating Member for pronouncement. : 5. Date on which fair order placed before Other Member : 6. Date on which the fair order comes back to the Sr.P.S./P.S. : 21.10.22 7. Date on which the file goes to the Bench Clerk. : 21.10.22 8. Date on which the file goes to the Head Clerk. : 9. The date on which the file goes to the Assistant Registrar for signature on the order. : 10. Date of Despatch of the Order :