MRS. MEENA MANGILAL SHARMA ( WIFE AND LEGAL HEIR OF LATE MR. MANGILAL C. SHARMA),MUMBAI vs. ITO, WARD 30(1)(3), MUMBAI

The assessee since deceased now represented by his wife and legal heir Mrs. Meena Mangilal Sharma, was retired senior citizen and earned his living as a part time salary worker and derived small rental income. For the A.Y.2016-17 assessee has filed return of income on 30/03/2018 declaring taxable income of Rs. 3,81,450/- and discharging the tax liability of Rs.7,590/-. The said return was processed u/s. 143(1). The return of income was accepted, however, the ld. AO issued show-caused notice dated 28/01/2019 for late filing of return of income. The assessee vide letter dated 05/02/2019 had filed detailed explanation which reads as under:- "Assessee is about 70 years old, retired and at the time part time for his survival and was also getting rental income. Assessee himself was filing his return of income with the help of his son. The delay in filing of return of income was due to his ill health. Assessee was suffering from high blood pressure and also started limping and has slowly become incapable of handling day-to-day work. MRI scan of brain showed a large Right Fronto- Temporo-Parietal Chronic Subdural Hematoma with midline shift (brain hemorrhage in early stage resulting in leakage of blood in arteries), and was finally operated for it Assessee was ill for quite a long period and hence could not file his return of income in time Copy of discharge letter from hospital submitted herewith. Even under the traumatic situation, assessee was well aware of the legal obligation cast upon him by the law of the land and has paid the due taxes and filed the return, albeit late. Your Honor will appreciate that assessee, a middleclass salaried employee, had nothing to hide, no culpable state of mind and has declared his true income despite his chronic illness does not deserve to be penalized and hence I request Mrs. Meena Mangilal Sharma (Wife and Legal Heir of Late Shri Mangilal C Sharma)

However, the ld. AO without considering the said reply has levied penalty of Rs.5000/-.

Before the ld. CIT (A) assessee again submitted the same explanation in the statement of facts filed alongwith form No.35, however, the ld. CIT (A) has dismissed the appeal for want of prosecution on the ground that assessee has failed to comply with various notices.

From the perusal of the records it is seen that assessee had given the reasons for delay in filing of return of income before the ld. AO which has not been even considered properly. The assessee has stated clearly that he is a senior citizen who was a retired person and who was doing part time job for survival and delay in filing the return was due to his serious ill health however, still the ld. AO failed to even acknowledge the said reply filed in response to the show- cause notice which is clear from the impugned order that assessee had personally appeared before the ld. AO and handed over the letter which was also acknowledged by the ld. AO. The ld. CIT (A) despite all these facts mentioned before him in the statement of facts has dismissed the appeal on the ground that assessee did not respond to the notices sent on e- mail.

Looking to the facts and circumstances of the case that assessee had reasonable and bonafide reason for not filing the Mrs. Meena Mangilal Sharma (Wife and Legal Heir of Late Shri Mangilal C Sharma) return within time and accordingly, in view of the provision of Section 273B, the penalty of Rs.5000/- levied u/s.271F is deleted.

In the result, appeal of the assessee is allowed. Order pronounced on 17th July, 2023.