PUNAM VISHURAJ MOTWANI,MUMBAI vs. ITO-27)2)(5), MUMBAI

This appeal by the assessee is directed against order dated 18/09/2024 passed by the Ld. Commissioner of Income-tax (Appeals) – National Faceless Appeal Centre, Delhi [in short ‘the Ld. CIT(A)’] for assessment year 2011-12.

“1. The Learned CIT (A) erred in facts and circumstances and in law in confirming Penalty that AO had levied u/s 271F, by refusing to condone a delay which itself was non condone a delay which itself was non-existent, when computed from existent, when computed from service of notices.

2. The Learned CIT (A) erred in facts and circumstances and in law Learned CIT (A) erred in facts and circumstances and in law Learned CIT (A) erred in facts and circumstances and in law in confirming Penalty that AO had levied u/s 271 ing Penalty that AO had levied u/s 271F when the appellant when the appellant was not statutorily obliged to file return of income. was not statutorily obliged to file return of income.

as occasion may arise or demand. aforesaid grounds of Appeal as occasion may arise or demand. aforesaid grounds of Appeal as occasion may arise or demand.”

3. The AR of appellant has submitted that the appellant is a The AR of appellant has submitted that the appellant is a The AR of appellant has submitted that the appellant is a senior citizen and she doesn’t know the intricacies of Income Tax senior citizen and she doesn’t know the intricacies of Income Tax senior citizen and she doesn’t know the intricacies of Income Tax Act. She has never fi Act. She has never filed Return of Income nor she led Return of Income nor she had registered with Income Tax portal. She sold an old immovable property and with Income Tax portal. She sold an old immovable property and with Income Tax portal. She sold an old immovable property and invested the entire sale consideration by acquiring another invested the entire sale consideration by acquiring another invested the entire sale consideration by acquiring another immovable property. immovable property. The claim of Ld. AR of the appellant is that The claim of Ld. AR of the appellant is that there is no tax liabili there is no tax liability and hence there is no need to file return of ty and hence there is no need to file return of income. It was submitted that the entire capital gains was invested income. It was submitted that the entire capital gains was invested income. It was submitted that the entire capital gains was invested in acquiring other property and hence capital gain tax is not in acquiring other property and hence capital gain tax is not in acquiring other property and hence capital gain tax is not leviable as the capital gain income is below taxable limit. Ld. AR of leviable as the capital gain income is below taxable limit. Ld. AR of leviable as the capital gain income is below taxable limit. Ld. AR of the appellant has also given a calculation sheet to show that the has also given a calculation sheet to show that the has also given a calculation sheet to show that the income of the appellant is below taxable limit and hence there is no income of the appellant is below taxable limit and hence there is no income of the appellant is below taxable limit and hence there is no need to file return of income. It was also pleaded that the main need to file return of income. It was also pleaded that the main need to file return of income. It was also pleaded that the main appeal relating to levy of capital gain tax is under appeal and same appeal relating to levy of capital gain tax is under appeal and same appeal relating to levy of capital gain tax is under appeal and same is pending with Ld. CIT(A). Hence, it was requested that the penalty s pending with Ld. CIT(A). Hence, it was requested that the penalty s pending with Ld. CIT(A). Hence, it was requested that the penalty levied by the Ld. AO may be set aside. Alternatively, it was levied by the Ld. AO may be set aside. Alternatively, it was levied by the Ld. AO may be set aside. Alternatively, it was requested that one more opportunity may be given to her to requested that one more opportunity may be given to her to requested that one more opportunity may be given to her to substantiate her case before Ld. CIT(A). substantiate her case before Ld. CIT(A).

4. Per contra, Ld. DR has Per contra, Ld. DR has relied on the orders of the lower relied on the orders of the lower authorities and submitted that the penalty levied by the Ld. AO authorities and submitted that the penalty levied by the Ld. AO authorities and submitted that the penalty levied by the Ld. AO should be sustained.

5. Rival submissions Rival submissions are heard and it is decided to give one more are heard and it is decided to give one more opportunity to the appellant for the following reasons : opportunity to the appellant for the following reasons : opportunity to the appellant for the following reasons :- a) The appellant is a senior citizen and her bonafides The appellant is a senior citizen and her bonafides The appellant is a senior citizen and her bonafides for not filing the return of income was not filing the return of income was not doubt because doubt because notices sent by the Department were not received by her due to change of by the Department were not received by her due to change of by the Department were not received by her due to change of address. b) The main appeal which deals with Capital Gains is still The main appeal which deals with Capital Gains is still The main appeal which deals with Capital Gains is still pending with Ld. CIT(A) for adjudication and thu with Ld. CIT(A) for adjudication and thu with Ld. CIT(A) for adjudication and thus penalty appeal may have some b appeal may have some bearing on the main appeal in the earing on the main appeal in the sense, if it is held that these is no taxable income, then sense, if it is held that these is no taxable income, then sense, if it is held that these is no taxable income, then appellant would have better chance to substantiate her case. appellant would have better chance to substantiate her case. appellant would have better chance to substantiate her case.

6. Accordingly, the appellant Accordingly, the appellant is directed to co to co-operate with Department for the disposal of main appeal and this penalty appeal. the disposal of main appeal and this penalty appeal. the disposal of main appeal and this penalty appeal.

7. As it is held that s held that the appellant would be given one more appellant would be given one more chance, the case is remitted to Ld. CIT(A) and the Ld. CIT(A) is chance, the case is remitted to Ld. CIT(A) and the Ld. CIT(A) is chance, the case is remitted to Ld. CIT(A) and the Ld. CIT(A) is directed to dispose of the main directed to dispose of the main appeal of leviability of Capital Gains appeal of leviability of Capital Gains and then decide this penalty appeal. and then decide this penalty appeal.

8. The appeal of appellant is allowed for statistical purposes. The appeal of appellant is allowed for statistical purposes. The appeal of appellant is allowed for statistical purposes.

Order pronounced in the open Court on Order pronounced in the open Court on 27/01 /01/2025.