AMREKI NAGRIK SAHKARI BANK LTD.,,RAJKOT vs. THE DIT, (I & CI),, AHMEDABAD

By way of this appeal, the assessee-appellant has challenged correctness of the order dated 18.02.2015 passed by the Director of Income-tax (I&CI), Ahmedabad, imposing a penalty of Rs. 10,900/- under section 271FA of the Income-tax Act, 1961, for the assessment year 2014-15.

To adjudicate on this appeal, only a few material facts are required to be taken note of. It is a case in which the assessee could not furnish the AIR information in time on account of the explanation, which is stated to be as follows:- “Our bank has implemented CBS program ‘Easy Core Application’ of Acute Informatics Pvt. Ltd., Ahmedabad w.e.f. 16.12.2013 as per the instructions issued by Reserve Bank of India. There were some problems in creating AIR Return in newly purchased program. And hence, we were in communication by phone with the support team of Acute Informatics Pvt Ltd repeatedly. Even though, the problem was not solved, we had emailed them in respect of column for Joint Party Transaction Details and count.

This explanation of the assessee was, however, rejected on the ground that it is too general in nature, and, therefore, does not merit acceptance.

The assessee is aggrieved and is in appeal before us.

None appeared on behalf of the assessee. We have heard the learned Departmental Representative and perused the material on record and duly considered the facts of the case in the light of applicable legal position.

We find that the assessee’s explanation for the delay in submission of the AIR Information is due to some technical fault in the software, with the help of which AIR Information was to be furnished. We have also noted that the assessee has, upon obtaining necessary technical assistance from the software vendor, duly submitted the AIR Information. In our considered view, the explanation of the assessee is a reasonable explanation which ought to have been accepted by the learned Director of Income-tax (I&CI). We, therefore, deem it fit and proper to delete the impugned penalty of Rs.10,900/- made on account of delay which, in our understanding, is on account of a reasonable cause. The assessee thus succeeds in the appeal and the penalty of Rs.10,900/- stands deleted. In the result, appeal is allowed. Order pronounced in the open Court on this 29th 7. day of January, 2018.