JOINT SUB REGISTRAR,RATLAM vs. DIRECTOR OF INCOME TAX (I & C I), BHOPAL

आयकर अपील य अधकरण, इंदौर यायपीठ, इंदौर

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.256/Ind/2018 Assessment Year 2014-15

Joint Sub Registrar, | Director of Income Tax First floor, Ranjeet Vilas | Vs. | (I&CI), Palace, Palace Road, | Bhopal Ratlam (Appellant) | (Respondent ) TAN No.BPLJ101954B

Revenue by | Shri K.G. Goyal, Sr.DR Assessee by | Shri Manish Dafria ,CA Date of Hearing | 18.06.2019 Date of Pronouncement | 20.06.2019

O R D E R

PER MANISH BORAD, AM.

This appeal is filed at the instance of the assessee pertaining to Assessment Year 2014-15 and is directed against the order of Ld. Director of Income Tax(I&CI) (in short 'DIT(I&CI), Bhopal dated 29.12.2017 framed u/s 271FA r.w.s. 274 of the Income Tax Act 1961(In short the 'Act').

- 1.That on the facts and in the circumstances of the case, the learned DIT(I&CI) is not justified in levying a penalty of Rs.3,51,500/- under section 271FA. - 2. The Ld. DIT(I&CI) had failed to appreciate the full facts of the cazse, as available before him. As such levied penalty is unwarranted, arbitrary and without providing/rebutting the facts. Thus the penalty so levied requires to be deleted in full. - 3. On the facts and in the circumstances of the case, the Ld. DIT(I&C) had erred in not providing proper opportunity of hearings.

Your appellant reserves the rights to add, adduce or alter any of the grounds of appeal, as mentioned.

- 5. Ld. Departmental Representative through supported order of the lower authority but could not controvert the contentions made by the Ld. Counsel for the assessee. - 6. We have heard rival contentions and perused the records placed before us. The assessee is in appeal against the levy of penalty of Rs.3,51,500/- u/s 271FA of the Act for non filing of Annual Information Return. We find that similar issue, same facts and figures came up before us in the case of Sub Registrar Jaora V/s Director Income Tax (I&CI), Bhopal (supra) wherein after adjudicating the issue the penalty was sustained at Rs.9,700/ after observing as follows:- - "6. We have heard rival contentions and perused the records placed before us. The assessee is a local authority controlled by State Government of Madhya Pradesh and carries out the work of registration of the documents pertaining to transfer of immoveable properties. The assessee is covered under the list of persons provided u/s 285BA Sub Section (i) of the Act and is under obligation to furnish AIR for the financial transaction or reportable action in Form No.61B. As per provisions of Section 285BA(ii) of the Act assessee was required to furnish statement in Form No.61B for every financial year by 31st May of the following year. The due date for financial year 2014-15 was 31.5.2015 which was subsequently extended to 10.12.2015. The assessee failed to file the information by 10.5.2016. Notices were issued by the revenue authorities

to file the details latest by 15.12.2015 but no compliance was made. Thereafter show cause notice u/s 271FA r.w.s. 274 of the Act was issued on 31.3.2016 for imposing the penalty for the lapse in not filing the Annual Information Report but there was no compliance to these notices. Assessee also failed to appear on dates fixed for hearing on 17.11.2017 and 21.12.2017. For this reason penalty of Rs.3,51,500/- was worked out @ Rs.500/- for the delay of 703 days (from 16.12.2015 to 17.11.2017).

- 7. We observe that the amount of penalty is computed as per the provisions of Section 271FA of the Act which provides that before 1.04.2018 penalty of Rs.100/-per day may be charged for number of days delay. Section 273B of the Act provides for not levying penalty in certain cases if the assessee proves that there was a reasonable cause for the failure. This section also refers to the penalty of Section 271FA of the Act. Reference was made to various correspondences with the Chief Secretary, Govt. of Madhya Pradesh, Department of Commercial Taxes and Chief Commissioner of Income Tax as well as Secretary, Finance Department of Revenue which talks about the technical problem due to which non integration of the departments portal with the Income Tax Departmental portal for PAN authentication was not achieved. This problem was solved at later stage and finally assessee filed Annual Information Report for financial year 2014-15 on 14.12.2017. Certainly there was a delay but there was reasonable cause for such delay". - 7. On examining the facts of the instant appeal in the light of the above decision we find that the issue is squarely covered by this decision and Ld. Departmental Representative failed to bring any contrary material. We therefore sustain the penalty of Rs.9,700/ u/s 271FA of the Act and delete the remaining amount of penalty of

Joint Sub Registrar, Ratlam ITA No.256/Ind/2018

Rs,3,41,800/- and partly allow the assessee's appeal.

The order pronounced in the open Court on 20.06.2019.

Sd/- Sd/-

( KUL BHARAT) (MANISH BORAD)

JUDICIAL MEMBER ACCOUNTANT MEMBER

दनांक /Dated : 20 June, 2019

/Dev

Copy to: The Appellant/Respondent/CIT concerned/CIT(A) concerned/ DR, ITAT, Indore/Guard file.

By order

Assistant Registrar, ITAT, Indore