NORMA LYDIA AYYASH,MUMBAI vs. INCOME TAX OFFICER WARD 24(3)(2), MUMBAI

PER OM PRAKASH KANT, AM These two appeals by the assessee are directed against two separate orders both dated 29.08.2022 passed by the Ld. Commissioner of Income-tax (Appeals)-55, Mumbai, [in short ‘the Ld. CIT(A)’] in relation to penalty levied u/s 271F of the Income-tax Act, 1961 (in short ‘the Act’) for non-filing of return of income and

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penalty u/s 271(1)(b) of the Act for non penalty u/s 271(1)(b) of the Act for non-complying notice issued complying notice issued during the assessment proceedings during the assessment proceedings, respectively. 2. In the grounds raised in both these appeals, the assessee is In the grounds raised in both these appeals, the assessee is In the grounds raised in both these appeals, the assessee is aggrieved with dismissal of the physically filed dismissal of the physically filed appeal appeal by the Ld. CIT(A). 3. We have heard rival submission of the parties on the issue We have heard rival submission of the parties on the issue We have heard rival submission of the parties on the issue-in- dispute and perused the relevant material on record. In view of the dispute and perused the relevant material on record. In view of the dispute and perused the relevant material on record. In view of the information available on Income information available on Income-tax Portal, interalia interalia, income in in relation to TDS of ₹2,37,156/ insurance premium of ₹3,00,000/-, 2,37,156/- insurance premium of cash deposit of ₹10,00,000/ 10,00,000/- and time deposit of ₹18,53,532/ 18,53,532/- and information of no return of income filed by the no return of income filed by the no return of income filed by the assessee, the Assessing Officer recorded reasons to believe Assessing Officer recorded reasons to believe that income income escaped assessment and commenced reassessment proceedings by way of commenced reassessment proceedings by way of commenced reassessment proceedings by way of issue of notice u/s 148 of the Act. No compliance of the notices issue of notice u/s 148 of the Act. No compliance of the notices issue of notice u/s 148 of the Act. No compliance of the notices issued by the Assessing Officer was made and therefore, the issued by the Assessing Officer was made and therefore, the issued by the Assessing Officer was made and therefore, the Assessing Officer completed completed the assessment in terms of section the assessment in terms of section 144 of the Act i.e. best judgment assessment and made addition of of the Act i.e. best judgment assessment and made addition of of the Act i.e. best judgment assessment and made addition of ₹33,90,670/-. In the assessment order, the Assessing Officer also . In the assessment order, the Assessing Officer also . In the assessment order, the Assessing Officer also issued penalty u/s 271F for non issued penalty u/s 271F for non-filing of return of income. The filing of return of income. The Assessing Officer also issued notices for levying penalty u/s Assessing Officer also issued notices for levying penalty u Assessing Officer also issued notices for levying penalty u 271(1)(b) of the Act for non 271(1)(b) of the Act for non-filing of the basic information in respect filing of the basic information in respect of notices issued during the assessment proceedings. The Assessing of notices issued during the assessment proceedings. The Assessing of notices issued during the assessment proceedings. The Assessing Officer levied penalty of ₹5,000/- u/s 271F vide order dated Officer levied penalty of u/s 271F vide order dated

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27.12.2017 and penalty 27.12.2017 and penalty of ₹10,000/- u/s 271(1)(b) of u/s 271(1)(b) of the Act on same date.

3.1 Aggrieved, the assessee filed appeal on 18.11.2018 Aggrieved, the assessee filed appeal on 18.11.2018 Aggrieved, the assessee filed appeal on 18.11.2018 in physical format in old Form No. 35 in old Form No. 35 before the Ld. CIT(A) in respect of both before the Ld. CIT(A) in respect of both the penalties. The Ld. CIT(A) pointed out certain deficiencies in the The Ld. CIT(A) pointed out certain deficiencies in the The Ld. CIT(A) pointed out certain deficiencies in the appeal filed and directed the appeal filed and directed the assessee to file the appeal online as assessee to file the appeal online as per the relevant Rules. The assessee complied and filed appeal in per the relevant Rules. The assessee complied and filed appeal in per the relevant Rules. The assessee complied and filed appeal in the electronic format on 14.08.2022. In view of electronic filing of format on 14.08.2022. In view of electronic filing of format on 14.08.2022. In view of electronic filing of the appeals, the Ld. CIT(A) dismissed these appeals which were filed , the Ld. CIT(A) dismissed these appeals which were filed , the Ld. CIT(A) dismissed these appeals which were filed in physical format. ormat. The fact narrated in both these appeals are both these appeals are identical and therefore identical and therefore, for brevity, we are reproducing the finding we are reproducing the finding of the Ld. CIT(A) in ITA NO. 2758/M/2022 in respect of penalty A) in ITA NO. 2758/M/2022 in respect of penalty A) in ITA NO. 2758/M/2022 in respect of penalty levied u/s 271F, as under: levied u/s 271F, as under: “4. Findings 4. Findings The appellant has sought to file The appellant has sought to file appeal against order us. appeal against order us. 271F dated 27.12.2017. The appeal was to be electronically 271F dated 27.12.2017. The appeal was to be electronically 271F dated 27.12.2017. The appeal was to be electronically filed on departmental portal within 30 days of the date of filed on departmental portal within 30 days of the date of filed on departmental portal within 30 days of the date of receipt of the penalty order i.e. 02.01.2018. However, the receipt of the penalty order i.e. 02.01.2018. However, the receipt of the penalty order i.e. 02.01.2018. However, the appellant has filed manual appeal on 19.01.2018. As p appellant has filed manual appeal on 19.01.2018. As p appellant has filed manual appeal on 19.01.2018. As per the response of the appellant to the deficiency letter, she has response of the appellant to the deficiency letter, she has response of the appellant to the deficiency letter, she has filed another appeal electronically on 14.08.2022 (which has filed another appeal electronically on 14.08.2022 (which has filed another appeal electronically on 14.08.2022 (which has been taken up separately for adjudication). been taken up separately for adjudication). 4.1 It is noted that the Central Board of Direct Taxes vide 4.1 It is noted that the Central Board of Direct Taxes vide 4.1 It is noted that the Central Board of Direct Taxes vide Income tax (3rd Amendmen Income tax (3rd Amendment) Rules, 2016 - substitution of substitution of Rule 45 and Form No.35 in Notification No. SO637(E) dated Rule 45 and Form No.35 in Notification No. SO637(E) dated Rule 45 and Form No.35 in Notification No. SO637(E) dated

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01.03.2016 made it mandatory to file appeal in Form No. 35 01.03.2016 made it mandatory to file appeal in Form No. 35 01.03.2016 made it mandatory to file appeal in Form No. 35 in an electronic manner. The case of the appellant is covered in an electronic manner. The case of the appellant is covered in an electronic manner. The case of the appellant is covered by the said notification. Thus, the appellan by the said notification. Thus, the appellant was required to t was required to e-file the above appeal (which has been done subsequently file the above appeal (which has been done subsequently file the above appeal (which has been done subsequently as also seen from appeal records) and therefore, this manual as also seen from appeal records) and therefore, this manual as also seen from appeal records) and therefore, this manual appeal filed by the appellant on 19.01.2018 is rendered void appeal filed by the appellant on 19.01.2018 is rendered void appeal filed by the appellant on 19.01.2018 is rendered void and liable to be dismissed for statistical purposes. and liable to be dismissed for statistical purposes. and liable to be dismissed for statistical purposes. 5. In view of the above, the appeal is dismissed. view of the above, the appeal is dismissed.” 4. The issue-in-dispute before us is whether the assessee was dispute before us is whether the assessee was dispute before us is whether the assessee was required to file the appeal in online format or in physical format. We required to file the appeal in online format or in physical format required to file the appeal in online format or in physical format find that the Central Board of Direct Taxes in this respect has find that the Central Board of Direct Taxes in this respect has find that the Central Board of Direct Taxes in this respect has amended the Rule 45 amended the Rule 45 of Income-tax Rules 1962 (in short ‘the Rules’) tax Rules 1962 (in short ‘the Rules’) and Form No. 35 by way of Notification No. SO637(E) dated and Form No. 35 by way of Notification No. SO637(E) dated and Form No. 35 by way of Notification No. SO637(E) dated 01.03.2016. The amended Rule 45(1) & (2) is reproduced for ready 01.03.2016. The amended Rule 45(1) & (2) is reproduced for rea 01.03.2016. The amended Rule 45(1) & (2) is reproduced for rea reference:

“45. Form of appeal to Commissioner (Appeals). 45. Form of appeal to Commissioner (Appeals). 45. Form of appeal to Commissioner (Appeals).-(1) An appeal to the Commissioner (Appeals) shall be made in appeal to the Commissioner (Appeals) shall be made in appeal to the Commissioner (Appeals) shall be made in Form No. 35. Form No. 35. (2) Form No. 35 shall be furnished in the following manner, (2) Form No. 35 shall be furnished in the following manner, (2) Form No. 35 shall be furnished in the following manner, namely:- (a) in the case of a person who is required to furni (a) in the case of a person who is required to furni (a) in the case of a person who is required to furnish return of income electronically under sub of income electronically under sub-rule(3) of rule 12, rule(3) of rule 12,- (i) by furnishing the form electronically under digital (i) by furnishing the form electronically under digital (i) by furnishing the form electronically under digital signature, if the return of income is furnished under digital signature, if the return of income is furnished under digital signature, if the return of income is furnished under digital signature;

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(ii) by furnishing the form electronically through electronic (ii) by furnishing the form electronically through electronic (ii) by furnishing the form electronically through electronic verification code in a verification code in a case not covered under sub-clause (i); clause (i); (b in a case where the assessee has the option to furnish (b in a case where the assessee has the option to furnish (b in a case where the assessee has the option to furnish the return of income in paper form, by furnishing the form the return of income in paper form, by furnishing the form the return of income in paper form, by furnishing the form electronically in accordance with clause (a) of sub* rule(2) electronically in accordance with clause (a) of sub* rule(2) electronically in accordance with clause (a) of sub* rule(2) or in paper for or in paper form.” 4.1 Thus, the option of filing the appeal in paper form was Thus, the option of filing the appeal in paper form was Thus, the option of filing the appeal in paper form was available only if the assessee had option of filing return of income in available only if the assessee had option of filing return of income in available only if the assessee had option of filing return of income in paper form. 4.2 However, we find that the assessee has already upload However, we find that the assessee has already upload However, we find that the assessee has already uploaded appeal in electronic format and the Ld. CIT(A) in electronic format and the Ld. CIT(A) has also mentioned has also mentioned that those appeal filed electronically has been taken up separately that those appeal filed electronically has been taken up separately that those appeal filed electronically has been taken up separately for adjudication and he for adjudication and he has dismissed the appeals in paper form the appeals in paper form only for avoiding duplica duplicacy of the appeals. Therefore, we do not y of the appeals. Therefore, we do not find any error in the order of the Ld. C any error in the order of the Ld. CIT(A) in dismissing the appeals. IT(A) in dismissing the appeals. However, we may like to mention that if there is any delay in filing However, we may like to mention that if there is any delay in filing However, we may like to mention that if there is any delay in filing the appeals in electronic format the appeals in electronic format, then delay might be condoned and then delay might be condoned and those appeals should be taken for adjudication. The assessee those appeals should be taken for adjudication. The assessee those appeals should be taken for adjudication. The assessee cannot be left without rem cannot be left without remedy of appeal against the penalty levied edy of appeal against the penalty levied and either of the appeals and either of the appeals whether online or paper form whether online or paper form has to be adjudicated by the Ld. CIT(A). adjudicated by the Ld. CIT(A). 4.4 In view of the above, the appeals filed by the assessee are In view of the above, the appeals filed by the assessee are In view of the above, the appeals filed by the assessee are disposed off.

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Order pronounced Order pronounced under Rule 34(4) of the ITAT Rules, under Rule 34(4) of the ITAT Rules, 1963 on 29/12/2022. /2022. Sd/- Sd/- - (ABY T VARKEY ABY T VARKEY) (OM PRAKASH KANT OM PRAKASH KANT) JUDICIAL MEMBER JUDICIAL MEMBER ACCOUNTANT MEMBER ACCOUNTANT MEMBER Mumbai; Dated: 29/12/2022 Rahul Sharma, Sr. P.S. Copy of the Order forwarded to Copy of the Order forwarded to : 1. The Appellant 2. The Respondent. 3. The CIT(A)- 4. CIT 5. DR, ITAT, Mumbai 6. Guard file. BY ORDER, BY ORDER, //True Copy// (Sr. Private Secretary) (Sr. Private Secretary) ITAT, Mumbai ITAT, Mumbai