Appeal success: Penalty reduced for non-filing Annual Information Return. Precedent aligned, reasonable cause considered.

The Tribunal partly allowed the appeal of the assessee, reducing the penalty imposed under section 271FA for non-filing of the Annual Information Return for Assessment Year 2014-15 to Rs. 9,700 from the initial penalty of Rs. 3,51,500. The decision aligned with a precedent case and considered the reasonable cause for the delay in filing the return. The Tribunal upheld the penalty based on the absence of contrary evidence from the Departmental Representative.

---

---

Issues:
Levy of penalty under section 271FA for non-filing of Annual Information Return (AIR) for Assessment Year 2014-15.

Analysis:
1. Grounds of Appeal: The assessee challenged the penalty of Rs. 3,51,500 imposed by the Ld. Director of Income Tax(I&CI) under section 271FA. The grounds included contentions that the penalty was unjustified, arbitrary, and lacked proper opportunity for hearings. The appellant reserved the right to modify the grounds of appeal.

2. Factual Background: The assessee, a local authority under the State Government of Madhya Pradesh, failed to submit Form 61B for the financial year 2014-15 by the extended due date of 10.9.2015, as required by Section 285BA of the Income Tax Act 1961. Despite notices and opportunities given, the assessee did not comply, leading to the penalty imposition.

3. Comparison with Precedent: The Ld. Counsel for the assessee cited a similar case before the Co-ordinate Bench to argue for applying the decision in the instant appeal. The Co-ordinate Bench had sustained a penalty of Rs. 9,700 in a comparable case involving non-filing of AIR by a local authority, emphasizing the obligation to furnish the required information.

4. Decision and Rationale: After considering the arguments and records, the Tribunal found that the issue in the current appeal was akin to the precedent case. The penalty was reduced to Rs. 9,700, aligning with the earlier decision. The Tribunal noted the absence of contrary evidence from the Ld. Departmental Representative and upheld the penalty based on the reasonable cause for the delay in filing the AIR.

5. Conclusion: The Tribunal partly allowed the assessee's appeal, sustaining the penalty at Rs. 9,700 under section 271FA while deleting the remaining amount. The decision was pronounced in open court on 20.06.2019, concluding the matter related to the penalty for non-filing of the Annual Information Return for the specified assessment year.

---