Sub Registrar Sarangpur, Sarangpur Rajgarh V. Director of Income Tax (I & CI), Bhopal

ITA 772/Ind/2018

• Counselvise Citation: [2019] 112 COUNSELVISE.COM (IT) 0548 (ITAT-INDORE)
• Duration Of Justice: 1 year(s) 2 month(s) 29 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 19-12-2019
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB
• Assessment Year: 2016-2017
• Appeal Filed On: 20-09-2018
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: PUNEET KUMAR
• Keywords: Reasonable cause
• Section: 273B; 274; 271B

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL, INDORE BENCH, INDORE BEFORE HON'BLE KUL BHARAT, JUDICIAL MEMBER AND HON'BLE MANISH BORAD, ACCOUNTANT MEMBER ITA NO.772/IND/2018 ASSESSMENT YEAR 2016-17 REVENUE BY S HRI S.S. DESHPANDE , CA ASSESSEE BY SHRI PUNEET KUMAR , SR. DR DATE OF HEARING 09 . 1 2 .2019 DATE OF PRONOUNCEMENT 19 . 12 .2019 O R D E R PER MANISH BORAD, AM. THIS APPEAL IS FILED AT THE INSTANCE OF THE ASSESSE E PERTAINING TO ASSESSMENT YEAR 2016-17 AND IS DIRECTED AGAINST THE ORDER OF LD. DIRECTOR OF INCOME TAX(I&CI) (IN SHORT DIT(I&CI), BHOPAL DATED 19.02.2018 FRAMED U/S 271FA R.W.S. 274 OF THE INCO ME TAX ACT 1961(IN SHORT THE ACT). 2. THE ASSESSEE HAS RAISED FOLLOWING GROUNDS OF AP PEAL; THAT ON THE FACTS AND IN THE CIRCUMSTANCES OF THE C ASE AND IN LAW, THE LEARNED DIT(I&CI) HAS ERRED IN IMPOSING PENALTY OF RS.33,000/- U/S 271FA OF THE ACT FOR NON FILING OF AIR RETURN WITHO UT CONSIDERING SUB REGISTRAR SARANGPUR , O/O SUB REGISTRAR SARANGPUR , RAJGARH(MP) VS. DIRECTOR OF INCOME TAX (I&CI), BHOPAL ( APPELLANT ) (RESPONDENT ) T AN NO. BPLO00574A SUB REGISTRAR SARANGPUR ITA NO.772/IND/2018 2 REASONABLE CAUSE. THE APPELLANT CRAVES, LEAVE TO ADD, ALTER OR AMEND ANY OF THE FOREGOING GROUNDS OF APPEAL IF AND WHEN NECESSARY. 3. THE ASSESSEE HAS SOLELY CHALLENGED THE LEVY OF P ENALTY OF RS.33,000/- U/S 271FA OF THE ACT. 4. BRIEF FACTS AS CULLED OUT FROM THE RECORDS ARE T HAT THE ASSESSEE IS A STATE GOVERNMENT AUTHORITY I.E. OFFICER OF SUB-R EGISTRAR OF SARANGPUR, A.B. ROAD, SARANGPUR, RAJGARH WHICH WAS UNDER A LEGAL OBLIGATION TO FILE ANNUAL INFORMATION REPORT BUT DI D NOT FILE THE REPORT. LD. DIRECTOR OF INCOME TAX (I & CI) PRIMARI LY ISSUED NOTICE U/S 285BA(1) OF THE ACT WHICH REMAINED UNATTENDED. THEREAFTER NOTICE U/S 285BA(5) OF THE ACT WAS ISSUED FOR NON-C OMPLIANCE OF THE PROVISIONS OF SECTION 271FA AND FINALLY PENALTY @ 500 PER DAY WAS IMPOSED FOR DELAY OF 66 DAYS RUNNING FROM 29.11.201 7 TO 02.02.2018, TOTALLING TO RS.33,000/-. 5. AGAINST THE LEVY OF THIS PENALTY ASSESSEE IS IN APPEAL BEFORE THE TRIBUNAL. 6. AT THE OUTSET, LD. COUNSEL FOR THE ASSESSEE SUBM ITTED THAT THERE WAS NO INTENTIONAL DELAY ON THE PART OF THE ASSESSE E. REGULAR CORRESPONDENCE WAS GOING ON BETWEEN THE ASSESSEE. C HIEF COMMISSIONER OF INCOME TAX AND PR. SECRETARY TO DEP ARTMENT OF REVENUE, MINISTRY OF FINANCE FOR ERROR IN E-GOVERNA NCE ON DIGITAL PLATFORM. LD. COUNSEL FOR THE ASSESSEE PRAYED THAT THE ASSESSEES CASE FALLS UNDER THE 273B OF THE ACT AND NO PENALTY SHOULD HAVE BEEN LEVIED AS THERE WAS A REASONABLE CAUSE FOR THE FAILURE. SUB REGISTRAR SARANGPUR ITA NO.772/IND/2018 3 7. PER CONTRA LD. DEPARTMENTAL REPRESENTATIVE VEHEM ENTLY ARGUED AND SUPPORTING THE ORDER OF LD. DIRECTOR OF INCOME TAX (I&CI). 8. WE HAVE HEARD RIVAL CONTENTIONS AND PERUSED THE RECORDS PLACED BEFORE US. THE ASSESSEE HAS CHALLENGED THE LEVY OF PENALTY U/S 271FA OF THE ACT AT RS.33,000/- COMPUTED FOR DELAY OF 66 DAYS @ 500 PER DAY. 9. WE OBSERVE THAT THE ASSESSEE IS REQUIRED TO FILE ANNUAL INFORMATION REPORT (IN SHORT AIR) TO THE INCOME TAX DEPARTMENT. FOR F.Y. 2014-15, THE REPORT HAS BEEN DULY FILED ON 27.08.2015 BUT FOR FINANCIAL YEAR 2015-16 THE ASSESSEE COULD NOT F ILE. FROM PERUSAL OF THE PAPER BOOK WE OBSERVE THAT ON 08.08.2016 THE RE WAS A COMMUNICATION FROM CHIEF REGISTERING AUTHORITY TO A LL THE SUB- REGISTRAR INFORMING THAT E-REGISTRATION FACILITY WI LL BE COMMENCED FROM 01.07.2015 AND FOR THE PERIOD 01.04.2015 TO 31 .07.2015 AND INFORMATION IS TO BE PROVIDED TO THE INCOME TAX DEP ARTMENT THROUGH AIR. AGAIN THERE WAS A COMMUNICATION IN JUL Y 2018 BY CHIEF REGISTERING AUTHORITY TO THE INCOME TAX DEPAR TMENT RELATING TO INFORMATION IN RESPECT OF PROPERTIES REGISTERED AND ALSO DISCUSSING ABOUT THE PROBLEM FACED IN INTEGRATION O F THE INCOME TAX DEPARTMENT WITH E-REGISTERING PORTAL. AGAIN ON 22.1 1.2017 WAS A LETTER ISSUED BY PR. SECRETARY DEPARTMENT OF COMMER CIAL TAX TO THE CHIEF COMMISSIONER OF INCOME TAX ABOUT THE PROBLEM FACED IN THE INTEGRATION OF INCOME TAX DEPARTMENT E-PORTAL AND D EPARTMENT OF REGISTRATION FOR A WEB ENABLED PORTAL FOR E-REGISTR ATION OF THE DOCUMENT PERTAINING TO IMMOVABLE PROPERTIES SINCE J ULY 2015. SUB REGISTRAR SARANGPUR ITA NO.772/IND/2018 4 FURTHER ON 10.01.2018 A LETTER WAS SUBMITTED BY THE DEPUTY SECRETARY DEPARTMENT OF COMMERCIAL TAX TO THE SECRE TARY FINANCE DEPARTMENT OF REVENUE WITH THE SUBJECT OF PRO-ACTIV E APPROACH FROM THE DEPARTMENT UNDER DIGITAL INDIAN PROGRAMME AND EASE OF DOING BUSINESS INITIATE. IT WAS ALSO THROUGH THIS L ETTER THE INCOME TAX DEPARTMENT WAS CONVEYED A PLAN OF GETTING THEIR PORTAL INTEGRATED WITH DEPARTMENT OF REGISTRATION AND STAM P PORTAL SO THAT MANUAL INTERVENTION CAN BE STOPPED. ALL THE SERIES OF COMMUNICATIONS ON VARIOUS DATES WHICH MAINLY FALL D URING THE PERIOD FOR WHICH THE NOTICES WERE ISSUED TO THE ASS ESSEE BETWEEN 08.11.2017 TO 02.02.2018 ARE SUFFICIENT ENOUGH TO P ROVE THAT THERE WAS NO INTENTIONAL DELAY ON THE PART OF THE ASSESSE E. SUCH CIRCUMSTANCES NEED TO BE EXAMINED IN THE LIGHT OF P ROVISIONS OF SECTION 273B OF THE ACT WHICH READS AS FOLLOWS: PENALTY NOT TO BE IMPOSED IN CERTAIN CASES 273B. NOTWITHSTANDING ANYTHING CONTAINED IN THE PRO VISIONS OF CLAUSE (B) OF SUB- SECTION (1) OF] 3 SECTION 271, SECTION 271A, 271AA, SECTION 271B 4 [271BA] [SECTION 271BB,] SECTION 271C, SECTION 271CA SECTION 271D, SECTION 271E, SECTION 2 71F [SECTION 271FA] SECTION 271FAB [SECTION 271FB] [SEC TION 271G]] [SECTION 271GA] [SECTION 271GB] [SECTION 271H] [SEC TION 271-I] [SECTION 271J] CLAUSE (C) OR CLAUSE (D) OF SUB- SE CTION (1) OR SUB- SECTION (2) OF SECTION 272A, SUB- SECTION (1) OF SE CTION 272AA] OR 5 SUB- SECTION (1) OF SECTION 272BB OR] CLAUSE (B) O F SUBSECTION (1) OR CLAUSE (B) OR CLAUSE (C) OF SUB- SECTION (2) OF SECTION 273, NO PENALTY SHALL BE IMPOSABLE ON THE PET- SON OR THE A SSESSEE, AS SUB REGISTRAR SARANGPUR ITA NO.772/IND/2018 5 THE CASE MAY BE, FOR ANY FAILURE REFERRED TO IN THE SAID PROVISIONS IF HE PROVES THAT THERE WAS REASONABLE C AUSE FOR THE SAID FAILURE.] 10. IN OUR CONSIDERED VIEW THE CASE OF THE ASSESSEE CLEARLY U/S 273B OF THE ACT AS THE ASSESSEE HAD A REASONABLE CA USE FOR THE SAID FAILURE TO FILE ANNUAL INFORMATION REPORT ON TIME W HICH WAS FINALLY SUBMITTED ON 29.08.2018. THEREFORE, IN THESE CIRCUM STANCES NO PENALTY SHOULD HAVE BEEN IMPOSED ON THE ASSESSEE U/ S 271FA OF THE ACT. WE, ACCORDINGLY DELETE THE PENALTY LEVIED U/S 271FA OF THE ACT OF RS.33,000/- AND ALLOW THE SOLE GROUND RAISED BY THE ASSESSEE. 11. IN THE RESULT THE APPEAL OF THE ASSESSEE IS ALL OWED. THE ORDER PRONOUNCED IN THE OPEN COURT ON 19.12.2 019. SD/- SD/- ( KUL BHARAT) (MANISH BORAD) JUDICIAL MEMBER ACCOUNTANT MEMBER / DATED : 19 TH DECEMBER , 2019 PATEL/PS COPY TO: THE APPELLANT/RESPONDENT/CIT CONCERNED/CIT (A) CONCERNED/ DR, ITAT, INDORE/GUARD FILE. BY ORDER ASSISTANT REGISTRAR, ITAT, INDORE