MAHARASHTRA STATE PHARMACY COUNCIL,MUMBAI vs. CIT (A)-NATIONAL FACELESS, DELHI

ITA 1141/MUM/2021Status: DisposedITAT Mumbai31 March 2022AY 2011-1214 pages
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What did the Tribunal hold?

The Tribunal held that the assessee had a reasonable cause for not getting its accounts audited due to a bonafide belief that its income was exempt. Therefore, the penalty levied under Section 271B was not justified.

What were the facts?

The Maharashtra State Pharmacy Council, a statutory body, failed to file income tax returns and get its accounts audited, believing its income was exempt. The Assessing Officer levied penalty under Section 271B for this failure, which was confirmed by the CIT(A).

What were the issues?

Whether a penalty under Section 271B is leviable when the failure to get accounts audited was due to a bonafide belief of income exemption, and if there was a reasonable cause for such failure.

Which sections of the Income-tax Act were involved?

Section 271B,Section 273B,Section 44AB

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Income Tax Appellate Tribunal, VIRTUAL COURT

Before: SHRI S. RIFAUR RAHMAN, HONBLE & SHRI AMARJIT SINGH, HONBLE

For Appellant: Shri Vimal Punmiya
For Respondent: Shri T. Shankar
Hearing: 08.02.2022Pronounced: 31.03.2022

PER BENCH

1.

These appeals are filed by the assessee against different orders of the Learned Commissioner of Income Tax (Appeals), National Faceless Appeal Centre, Delhi [hereinafter in short “Ld.CIT(A)”] dated 26.03.2021 for the A.Y.2011-12 to A.Y. 2014-15. 2. Since the issues raised in all the appeals are identical, therefore, for the sake of convenience, these appeals are clubbed, heard and disposed off by this consolidated order. We are taking Appeal in ITA.No. 1141/MUM/2021 for Assessment Year 2011-12 as a lead case.

3.

At the time of hearing, Ld. AR brought to our notice

The order continues below.

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