2015 (8) TMI 1195 - AT - Income Tax

Penalties for Not Quoting PAN Justified but Deleted Due to Appellant's Circumstances

Halimaben Jamalbhai Momin, Karimaben Jamalbhai Momin, Aminaben Jamalbhai Momin, Abdulbhai Jamalbhai Momin, Mohamadbhai Jamalbhai Momin Versus ACIT, Cir. 6

The Tribunal considered appeals against orders of CIT(A)-XI regarding the levy of penalties under section 272B for not quoting PAN in appeals. The ... Penalty under section 272B - not quoting PAN in the appeal filed before the CIT(A), - Held that:- The department has brought no material before us to show that the assessee was allotted PAN by the AO as per the provisions of sub-section (2) of section 139A of the Act. Further, as per the provisions of section 273B, penalty under section 272B is not leviable, if the alleged default was for reasonable cause.We further find from the challan of Tribunal fee, attached with the appeal memo that the assessee has quoted PAN therein. We further find that no material was brought before us to show that the assessee was informed by the department of her PAN and legal requirement of putting PAN at any time so that it can be inferred that the default was willful or bona fide. Keeping in view the entire facts, in our considered view, the default on the part of the assessee was because of her ignorance and not because of any mala fide intention, and therefore, we delete the penalty levied under section 272B of the Act. - Decided in favour of assessee. Issues:Appeals against orders of CIT(A)-XI dated 17.6.2011; Levy of penalty under section 272B for not quoting PAN in appeals before CIT(A); Consideration of common ground in all appeals.Analysis:The appeals were filed against separate orders of the CIT(A)-XI, all dated 17.6.2011. The hearing was scheduled for 13.2.2015, but the appellants did not appear, leading to ex parte disposal with the DR's submissions considered. The common ground in all appeals was the levy of penalty under section 272B for not quoting PAN in appeals before CIT(A). The representative argued based on identical facts in all cases, supporting the CIT(A)'s decision. The Tribunal decided to consider the facts of one case and apply it to all appellants.In the case of Smt. Halimaben Jamalbhai Momin, the assessing officer imposed a penalty of Rs. 10,000 under section 272B for not quoting PAN in appeals before CIT(A) and ITAT. The appellant's written submissions highlighted being an agriculturist without other income, not falling under section 139A conditions, and selling agricultural land without a PAN. The CIT(A) upheld the penalty, citing non-compliance with section 139A provisions.The Tribunal analyzed the case, emphasizing the requirement to quote PAN under section 139A(5) and the penalty provisions of section 272B. It noted the income exceeding the non-taxable limit, making PAN mandatory. While ITAT wasn't an income-tax authority, quoting PAN before CIT(A) was necessary. Referring to a court decision, the Tribunal found the penalty justified under section 272B due to non-compliance with section 139A requirements.The Tribunal reviewed the lower authorities' orders and found the penalty justified for not quoting PAN in the appeal before CIT(A). However, considering the appellant's illiteracy, lack of taxable income except from land sale, and absence of PAN allotment by the AO, the penalty was deemed unjustified. The Tribunal observed the appellant's ignorance as the reason for non-compliance, deleting the penalty in all appeals. The decision was pronounced on 20th February 2015 in Ahmedabad.