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IN THE INCOME TAX APPELLATE TRIBUNAL "SMC" BENCH, AHMEDABAD
[ Before Shri Pramod Kumar, Accountant Member ]
ITA No. 2224/Ahd/2016 Assessment Year : 2014-15
Sub Registrar Narol-5, State Govt. Department, Near Ramji Mandir, Khokhra Char Rasta, Khokhara, Ahmedabad – 380 021 [PAN : ADHPM 7163 Q] | Appellant Vs. Director of Income Tax (I&CI) Ahmedabad | Respondent
Appearances by:
PF Jain, for the appellant Sonia Kumar, for the respondent
Date of concluding the hearing : 12.10.2018 Date of pronouncing the order : 15.10.2018
O R D E R
- 1. By way of this appeal, the assessee has challenged correctness of the order dated 26.07.2016 passed by the CIT(A) in the matter of penalty under section 271FA of the Income-tax Act, 1961, for the assessment year 2014-15. - 2. Grievance raised by the appellant is as follows:-
"The ld. DIT has erred in law and on facts in levying penalty of Rs.26,700/ u/s 271FA without properly considering and appreciating the facts of the appellant."
- 3. I have noted that the CIT(A) has simply dismissed the appeal as nonmaintainable as the appeal should have been filed before the Tribunal. Learned counsel has prayed that the delay in filing of appeal may be condoned as the appeal was wrongly filed before the CIT(A). I accept the plea. Accordingly, the delay is condoned. - 4. On merits, I find that the penalty order itself notes the reason for delay in filing of AIR is as follows:-
"The Sub-Registrar – Narol-5, Ahmedabad has given explanation of notice under section (5) of section 285BA of the Income Tax Act on 07.03.2015. The in-charge Sub-Registrar has stated that he had taken charge as SRO – Narol-5, Ahmedabad on 25.11.2014 and after receiving the notice u/s 285BA(5), he has contacted Data Entry Operator to whom the work of filing AIR was assigned by old SRO-Narol-5, Ahmedabad. The SRO has stated that as per the Data Entry Operator, AIR for FY 2013-14 was filed but not uploaded due to some technical problem.
Mr. N.R. Mistry, Clerk of SRO, Narol-5, Ahmedabad has appeared on 11.03.2015 and filed copy of provisional receipt of AIR for FY 2013-14 which is filed on 10.03.2015."
- 5. Yet, the Assessing Officer has proceeded to impose the penalty under section 271FA by observing that "the provisions of section 285BA of the Act are mandatory". Aggrieved, assessee is in appeal before me. - 6. I have heard the rival contentions, perused the material on record and duly considered facts of the case in the light of the applicable legal position. - 7. I find that in terms of section 273B, a penalty under section 271FA cannot be imposed in a situation in which it can be shown that the failure for the lapse was due to reasonable cause. In the present case, I find there was a reasonable cause for the delay in filing of AIR return. I, therefore, delete the impugned penalty. - 8. In the result, appeal is allowed. Order pronounced in the open Court on this 15th day of October, 2018.
Sd/-
Pramod Kumar (Accountant Member)
Ahmedabad, the 15th day of October, 2018
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- Copies to: (1) The appellant - (2) The respondent - (3) Commissioner - (4) CIT(A) - (5) Departmental Representative - (6) Guard File
By order
TRUE COPY
Assistant Registrar Income Tax Appellate Tribunal Ahmedabad benches, Ahmedabad