SUB REGISTRAR BHIWANI vs. DIRECTOR INCOME TAX CHD

ITA/105/2017HC Punjab & HaryanaPHHC01117288201718 May 2017Author: MR. JUSTICE SURINDER GUPTA,MR. JUSTICE JITENDRA CHAUHAN10 pages
AI SummaryDismissed

What were the facts?

The appellant, Sub-Registrar, Bhiwani, is challenging an order of the Income Tax Appellate Tribunal (Tribunal) for the financial year 2008-09. The appellant was required to file Annual Information Returns (AIR) for transactions of immovable property valued at ₹30 lakhs or more. There was a delay in filing AIR for five consecutive financial years starting from 2004-05. A show cause notice was issued on 06.09.2010, and a penalty was imposed under Section 271FA of the Income Tax Act, 1961. The Commissioner of Income Tax (Appeals) partly allowed the appeal, cancelling penalties up to the date of the first notice. The Tribunal dismissed the appellant's appeal, and a subsequent miscellaneous application for rectification was also dismissed. The present appeals are filed against the Tribunal's order dated 06.09.2016.

What did the High Court hold?

The High Court held that the appeals did not involve any substantial question of law. Regarding the time-bar issue under Section 275, the appellant failed to demonstrate how the order imposing penalty, passed on 06.01.2011, was beyond the limitation period, especially when the show cause notice was issued on 06.09.2010 and reply was sought by 27.09.2010. The Court also noted that the Tribunal had categorically recorded that the assessee had not established any reasonable cause for not filing the AIR within time and had failed to provide supporting documentary evidence. The Tribunal's finding that the facts of the present case were not identical to the cases relied upon by the assessee was also not successfully controverted. The Court found no error in the Tribunal's findings, particularly in light of the decision in Joint Sub-Registrar, Sangat, District Bathinda Vs. Director of Income Tax (CIB), Chandigarh. Consequently, the appeals were dismissed.

What were the issues?

1. Whether the penalty imposed is in contravention of Section 275 of the Income Tax Act, 1961, being time-barred, given that penalty proceedings were initiated on 30.11.2006 with the issuance of a notice under Section 285BA(5) of the Act? 2. Whether the Director of Income Tax (CIB) was unjustified in imposing a penalty of ₹15,600/- when the appellant had filed Annual Information Returns before receiving the show cause notice? 3. Whether the Director of Income Tax (CIB) erred in not considering the frequent transfers of Sub-Registrars (seven officers in five years) as a reasonable cause for the delay? 4. Whether the appellant, posted as Sub-Registrar on 16.08.2010, is responsible for lapses committed by predecessors? Assessee's contentions: - The penalty is time-barred under Section 275. - The penalty is unjustified as AIRs were filed before the show cause notice. - Frequent transfers of officers constitute a reasonable cause for delay. - The current Sub-Registrar is not responsible for predecessors' lapses. Revenue's contentions: - Not recorded in the judgment.

Which sections of the Income-tax Act were involved?

Section 260A,Section 285BA,Section 271FA,Section 275(1)(c),Section 273B

AI-generated summary — verify with the full judgment below

1

IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH

ITA No. 105 of 2017 (O&M)

Date of decision: 18.5.2017

Sub-Registrar, Bhiwani

……Appellant

Vs.

Director of Income Tax (CIB), Chandigarh

…..Respondent CORAM: HON’BLE MR. JUSTICE AJAY KUMAR MITTAL

HON’BLE MR. JUSTICE HARINDER SINGH SIDHU

Present: Mr. Ajay Shekhawat, Advocate for the appellant-assessee.

Ajay Kumar Mittal,J.

1.

This order shall dispose of ITA Nos. 105, 106, 108, 109 and 151 of 2017 as the Tribunal vide one consolidated order dated 06.09.2016 impugned in these appeals decided the same. However, the facts are being extracted from the ITA No.105 of 2017. 2. ITA No. 105 of 2017 has been preferred by the appellant Sub- Registrar, Bhiwani under Section 260A of the Income Tax Act, 1961 (in short, “the Act”) against the order dated 06.09.2016, Annexure.9, passed by the Income Tax Appellate Tribunal, Delhi Division Bench “Friday-C”, New Delhi (in short, “the Tribunal”) in ITA No. 5737/DEL/2012, for the financial year 2008-09, claiming follow

The order continues below.

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