M/S. KANKARIA INDUSTRIES ,NOKHA vs. ITO,, NOKHA

Brief facts of the case are that the AO noted that the assessee had filed return of income electronically on 26.11.2014 and there was specified domestic transaction as mentioned in section 92BA of the Act aggregating to Rs.6,78,61,350/-. The AO noted that as per section 92E

We have heard rival submissions and gone through the facts and circumstances of the case. The Ld. AR drew our attention to the fact that assessee before the prescribed period had obtained report from the Chartered Accountant for the specified domestic transaction in prescribed Form 3CEB on 15.10.2014 as per section 92E of the Act in the prescribed Form No. 3CEB on or before the 30th day of November, 2014 and because of technical glitches though the return of income was uploaded Form No. 3CEB could not be uploaded which fact the assessee came to know later only when the scrutiny assessment was carried out and thereafter, immediately the assessee had filed report in Form 3 CEB in manual form before the AO which fact has not been denied by the AO. According to Ld. AR, due to the technical glitches, the Form No. 3CEB could not be uploaded cannot be a ground to impose penalty u/s. 271BA of the Act and since the assessee had already obtained the Form No. 3CEB before the prescribed date, the technical fault of the Inter-net cannot be a ground to levy penalty on the assessee and, therefore, there is reasonable cause for not uploading the report in Form 3CEB on time and, therefore, no penalty u/s. 271BA of the Act can be levied on the assessee and she prays that the penalty may be deleted.

Per contra, the Ld. DR vehemently supported the orders of the lower authorities and cited the decision of the ITAT, Amritsar Bench in the case of Ajit Singh Rana Vs. ACIT (2013) 33 taxmann.com 502 (Amritsar. Trib.) which has been reproduced by the Ld. CIT(A) at page 6 of the impugned order. According to Ld. DR, when the assessee could have uploaded the return of income electronically, then why the assessee could not have been uploaded the report in form 3CEB and according to him the contention of the assessee is unbelievable and, therefore, he does not want us to interfere in the order passed by the Ld. CIT(A).

Having heard both the sides and after carefully perusing the records, we note that the facts stated above are not controverted and, therefore, are not repeated for the sake of brevity. The fact that assessee had filed the return of income electronically on 26.11.2014 stands uncontroverted. The assessee had transacted unspecified domestic transaction has also not controverted and this fact had been admitted by the assessee. According to Ld. AR, though the return of income could be successfully uploaded electronically on 26.11.2014, however, though the audit report prescribed in Form No. 3CEB was in the possession of the assessee on 15.10.2014 (which was well before the prescribed date for filing the audit report u/s. 92E of the Act.) the uploading of Form No.3CEB could not materialize for no fault of assessee. We note that the auditor has audited the books of the assessee as per statute and since as per the Act, the assessee was required to file such report in Form No. 3CEB while uploading the return of income, it is taken note that the assessee got the audit report in the prescribed Form no. 3CEB on 15.10.2014 which was well within the prescribed time stipulated by statute and the return of income was uploaded later only on 27.11.2014. Though the return of income could be uploaded Form No. 3CEB due to the glitches in the Inter-net it could not be uploaded for no fault of the assessee and the form 3CEB report prepared manually has been placed before the AO who later completed the assessment after perusal of the same. In such a scenario, due to the electronic glitches of the Inter-net at the time of uploading is considered reasonable cause, which omission cannot be attributed on the assessee and therefore cannot be ground for levy of penalty u/s. 271BA of the Act. Therefore, in the light of section 273B of the Act which provides that no penalty, inter alia, u/s. 271BA of the Act will be leviable if there is reasonable cause for the failure of the assessee to comply with the provisions mentioned therein. In this view of the matter and in the light of the facts and circumstances as discussed above, we direct the deletion of penalty levied on the assessee u/s. 271BA of the Act. The appeal of the assessee is allowed.

In the result, the appeal of the assessee is allowed.

""यथ"/ The Respondent 3. आयकरआयु त/ CIT 4. आयकरआयु त (अपील)/ The CIT(A)

"वभागीय""त"न%ध, आयकरअपील'यआ%धकरण, च*डीगढ़/ DR, ITAT, Jodhpur 6. गाड-फाईल/ Guard File