Loading judgment…
Facts
The Assessing Officer levied a penalty of Rs. 5,000 on the assessee for not filing the original income tax return for Assessment Year 2015-16. This penalty was imposed after information surfaced about the assessee depositing Rs. 20.50 lakh and purchasing property worth Rs. 43 lakh, leading to the reopening of the case under Section 148A and Section 148 of the Act. The assessee contended that she had no taxable income and was under a bonafide belief that she was not obliged to file a return under Section 139.
Held
The Tribunal observed that the assessee's bonafide belief was evident from the fact that she declared 'Nil' income in the return filed in response to the notice under Section 148. Considering that the assessee had no taxable income, the Tribunal held that no penalty was leviable. Consequently, the appeal filed by the assessee was allowed.
Key Issues
The key issue was whether a penalty for non-filing of the original return under Section 139 was justified when the assessee claimed no taxable income and subsequently filed a 'Nil' return after reopening proceedings under Sections 148A and 148.
Sections Cited
148A, 148, 139
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, COCHIN BENCH, COCHIN
Before: Shri Inturi Rama Rao & Shri Prakash Chand Yadav
Asst.Year 2015-2016 Smt.Kunjumol Shali The Income Tax Officer Shalida Manzil Ward - 2 v. Nangairkulangara P.O., Chingoli Alappuzha. Alappuzha – 690 513. PAN : BFRPS3949M. (Appellant) (Respondent) Appellant by : Sri.Sureshkumar Varma, CA Respondent by :Smt.Leena Lal, Sr.AR Date of Pronouncement : 04.04.2025 Date of Hearing : 27.02.2025. O R D E R
Per Prakash Chand Yadav, JM :
The present appeal of the assessee is arising from the order of the NFAC / learned Commissioner of Income-tax (Appeals) dated 30th August, 2024and relates to the assessment year 2015-2016, having DIN & Order No.ITBA/NFAC/S/250/2024-25/1068185369(1).
The brief facts of the case are that the Assessing Officer levied penalty of Rs.5,000 on the assessee on the ground that the assessee failed to file the original return for the impugned year. It is pertinent to note here that in this case an information was surfaced with the Assessing Officer showing that the assessee has deposited an amount of Rs.20,50,000 in State Bank of India and purchased one property of Rs.43 lakh . Smt.Kunjumol Shali. in the impugned year. On the basis of this information, the case of the assessee was reopened u/s.148A of the Act. Thereafter the case of the assessee was reopened u/s.148 of the Act on 31st May, 2022. In response to this notice, the assessee filed return of income on 1st July, 2022 declaring ‘Nil’ income. So far as the assessment proceedings are concerned, the appeal of the assessee in quantum proceedings is still pending before the CIT(A).
In this case, we are concerned with the levy of penalty of Rs.5,000 which the AO has levied for non-filing of the original return in time. The learned Counsel for the assessee argued that since the assessee having no taxable income, she was not obliged to file the return of income u/s.139. The Counsel for the assessee also pointed out that in earlier year also the assessee has not filed any return of income as the assessee was not having any taxable income, and therefore, the assessee was under bonafide belief that she need not file any return.
The learned Departmental Representative relied upon the orders of the authorities below.
We have heard the rival submissions and perused the material available on record. We are of the view that the bonafide of the assessee can be seen from the fact that in response to notice u/s.148 issued has not declared in the return of income. Therefore, in our view, no penalty is leviable having regard to the present case.
In the result, the appeal filed by the assessee is allowed.
Order pronounced on this 04 day of April, 2025.