Tribunal overturns penalty for late E-verification due to illness, ruling it not wilful.

The Tribunal allowed the appeal and deleted the penalty of 5,000 imposed under section 271F of the Income Tax Act. The delay in E-verification was attributed to the representative's illness and subsequent demise, which constituted a reasonable cause. The Tribunal found the delay not wilful or wanton, leading to the conclusion that the penalty was unwarranted.

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Issues:
The case involves an appeal against the penalty imposed under section 271F of the Income Tax Act, 1961 for failure to file the return of income within the stipulated time limit.

Issue 1: Assessment and Penalty Imposition
The assessment was completed under section 147/144 of the Act, and the penalty of &8377;5,000 was levied under section 271F for not filing the return within the specified time limit under section 139(1) of the Act. The penalty was confirmed by the ld. CIT(A).

Issue 2: Grounds of Appeal
The appellant contended that the delay in E-verification of the return filed was due to reasonable cause, and not wilful or wanton. The appellant sought deletion of the penalty levied under section 271F of the Act.

Issue 3: Tribunal's Decision
After considering the submissions and evidence, the Tribunal noted that the delay in E-verification was due to the representative's illness and subsequent demise, which prevented timely action. The Tribunal found that the delay was not wilful or wanton, and the appellant was prevented by reasonable cause. Consequently, the Tribunal decided to delete the penalty of &8377;5,000 imposed under section 271F of the Act.

In the case, the appellant filed an appeal against the penalty imposed under section 271F of the Income Tax Act for failing to file the return of income within the prescribed time limit. The appellant argued that the delay in E-verification was due to reasonable cause, as the representative who filed the return fell ill, was hospitalized, and subsequently passed away. The appellant believed that the representative had completed the E-verification process. Upon realizing the oversight after receiving a notice under section 148 of the Act, the appellant promptly refiled the return. The Tribunal acknowledged the circumstances leading to the delay and the appellant's genuine belief regarding the E-verification process. Considering the facts presented, the Tribunal concluded that the penalty was not justified as the delay was not intentional but caused by unforeseen events. Therefore, the Tribunal allowed the appeal and deleted the penalty of &8377;5,000 imposed under section 271F of the Act.

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