LIONS NAB COMMUNITY EYECARE CENTRE MIRAJ,MIRAJ, SANGLI vs. EXEMPTION WARD-KOLHAPUR, TARABAI PARK, KOLHAPUR

This appeal at the instance of assessee is directed against the order of the Ld. CIT(A)/National Faceless Appeal Centre, Delhi dated 20.05.2024 for Assessment Year 2017-18.

Though, the assessee has raised four grounds of appeal but the main grievance in ground No. 1 is that the Ld. CIT(A) has dismissed the appeal in limine on account of delay in filing of the appeal and thus prayed for condonation of delay. So far as the merits of the case is concerned, the same relates to levy of penalty u/s. 271F of the Act at Rs.5,000/- for not filing the income tax return.

The Ld. Departmental Representative vehemently argued and supporting the order of the lower authorities.

We have heard the rival contentions and perused the record placed before us. Admittedly, the assessee trust did not file return of income for A.Y. 2017-18 and the for such failure penalty proceedings u/s. 271F of the Act were initiated and finally penalty of Rs.5,000/- imposed on the assessee. The penalty order was passed on 13.01.2022 but the appeal was filed before the Ld. CIT(A) on 13.10.2023. Same part of the delay in filing of the assessee deserves to be condoned on account of limitation period extended by the Hon'ble Apex Court in view of Covid-19 pandemic. However, still some delay is left but considering the facts and reasons mentioned, we find that such delay in filing of the appeal before the Ld. CIT(A) deserves to be condoned.

Now, since in the impugned order the Ld. CIT(A) has not dealt on merits and merely dismissed the appeal in limine ideally the matter needs to be restored to the Ld. CIT(A). However, considering the smallness of the issue, we deem it proper to adjudicate the issue on merits of the case. Coming to the facts that the assessee was having two PAN Number, first one was allotted as AABFL4373L and it clearly indicates that since the 4th letter is “F” the status of the assessee in this PAN Number is firm, but since, the assessee is trust, the relevant form which is meant for filing the return of income for trust cannot be uploaded under the PAN of firm. The assessee duly filed application for cancellation of old PAN and has been issued new PAN as AABTL3432A and the return of income has been filed on this PAN. We find that due to this reason of old PAN under firm status and new PAN under trust status the impugned issue has arisen and the assessee has been wrongly penalized u/s. 271F of the Act. Considering the facts and circumstances of the case, we delete the impugned penalty levied u/s. 271F of the Act and allow the appeal of the assessee. Effective grounds of appeal raised by the assessee are allowed.

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