KUNJUMOL SHALI,ALAPPUZHA V. ITO, WARD 2, ALAPPUZHA

ITA 901/COCH/2024

AI Insights

The case involves Smt. Kunjumol Shali, who was penalized by the Income Tax Officer for not filing her income tax return for the assessment year 2015-2016. The penalty of Rs. 5,000 was imposed after the assessee was found to have made significant deposits and property purchases during the year in question. The assessee argued that she had no taxable income and was under the bona fide belief that she was not required to file a return. The tribunal, after considering the circumstances and the assessee's response to the notice under section 148, decided in favor of the assessee, stating that no penalty was leviable.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 470379 (ITAT-COCHIN)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 04-04-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB
• Assessment Year: 2015-2016
• Laws Referred To: Income Tax Act
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: LEENA LAL
• Assessee Lawyers: SURESH KUMAR VARMA
• Keywords: Bonafide belief

Judgement Text

"N THE INCOME TAX APPELLATE TRIBUNAL COCHIN BENCH, COCHIN Before Shri Inturi Rama Rao, Accountant Member & Shri Prakash Chand Yadav, Judicial Member ITA No.901/Coch/2024 : Asst.Year 2015-2016 Smt.Kunjumol Shali Shalida Manzil Nangairkulangara P.O., Chingoli Alappuzha – 690 513. PAN : BFRPS3949M. v. The Income Tax Officer Ward - 2 Alappuzha. (Appellant) (Respondent) Appellant by : Sri.Sureshkumar Varma, CA Respondent by :Smt.Leena Lal, Sr.AR Date of Hearing : 27.02.2025. Date of Pronouncement : 04.04.2025 O R D E R Per Prakash Chand Yadav, JM : The present appeal of the assessee is arising from the order of the NFAC / learned Commissioner of Income-tax (Appeals) dated 30th August, 2024and relates to the assessment year 2015-2016, having DIN & Order No.ITBA/NFAC/S/250/2024-25/1068185369(1). 2. The brief facts of the case are that the Assessing Officer levied penalty of Rs.5,000 on the assessee on the ground that the assessee failed to file the original return for the impugned year. It is pertinent to note here that in this case an information was surfaced with the Assessing Officer showing that the assessee has deposited an amount of Rs.20,50,000 in State Bank of India and purchased one property of Rs.43 lakh ITA No.901/Coch/2024. Smt.Kunjumol Shali. 2 in the impugned year. On the basis of this information, the case of the assessee was reopened u/s.148A of the Act. Thereafter the case of the assessee was reopened u/s.148 of the Act on 31st May, 2022. In response to this notice, the assessee filed return of income on 1st July, 2022 declaring ‘Nil’ income. So far as the assessment proceedings are concerned, the appeal of the assessee in quantum proceedings is still pending before the CIT(A). 3. In this case, we are concerned with the levy of penalty of Rs.5,000 which the AO has levied for non-filing of the original return in time. The learned Counsel for the assessee argued that since the assessee having no taxable income, she was not obliged to file the return of income u/s.139. The Counsel for the assessee also pointed out that in earlier year also the assessee has not filed any return of income as the assessee was not having any taxable income, and therefore, the assessee was under bonafide belief that she need not file any return. 4. The learned Departmental Representative relied upon the orders of the authorities below. 5. We have heard the rival submissions and perused the material available on record. We are of the view that the bonafide of the assessee can be seen from the fact that in response to notice u/s.148 issued has not declared in the return of income. Therefore, in our view, no penalty is leviable having regard to the present case. ITA No.901/Coch/2024. Smt.Kunjumol Shali. 3 6. In the result, the appeal filed by the assessee is allowed. Order pronounced on this 04 day of April, 2025. Sd/- (Inturi Rama Rao) Sd/- (Prakash Chand Yadav) ACCOUNTANT MEMBER JUDICIAL MEMBER Cochin; Dated : 04th April, 2025. Devadas G* Copy to : 1. The Appellant. 2. The Respondent. 3. The CIT, Cochin. 4. The DR, ITAT, Cochin. 5. Guard File. Asst.Registrar/ITAT, Cochin "