Non filing of statutory return and penalty assessment: reasonable cause rejected; reduced per day penalty imposed; no mens rea required.

Penalty under provisions for non filing of statutory returns was imposed despite the taxpayer furnishing explanations; the authorities found no mens rea element required by the statutory language and rejected the taxpayer's claim of reasonable cause for a 525 day delay, treating the stated reasons as insufficient, and accordingly sustained penalty liability. The respondents specifically considered the contention under the reasonable cause standard and declined relief; however, the imposed rate was reduced in practice from the maximum daily amount to a lower per day penalty. The decision also records that no remedy to a tribunal lies from orders under the penalty provision.

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Issues involved:
The imposition of penalty under Section 271FA of the Income Tax Act, 1961 for non-filing of a return despite providing explanation and reasonable cause.

Details of the judgment:
The petitioner, a Sub Registrar, was penalized under Section 271FA for not filing an Annual Information Return (AIR) as required by Section 285BA(1)(b) of the Income Tax Act. The petitioner assumed charge after the due date for filing the report, believing it had been submitted by the predecessor. Upon realizing the error, the petitioner rectified the situation by submitting the data. Despite expressing regret, the penalty was imposed. The petitioner's appeal to the Income Tax Appellate Tribunal was dismissed, leading to the writ petition.

The petitioner argued that the penalty under Section 271FA should be waived as there was a reasonable cause for the delay in filing the return, as allowed under Section 273B of the Act. The petitioner contended that the Tribunal's refusal to consider the appeal was unjustified, especially since the Tribunal itself indicated that the appeal lies with them.

The respondents countered by stating that ignorance of the law is not an excuse and that the delay in filing the return was not justified. They argued that the reasons provided by the petitioner did not constitute a reasonable cause for the delay. The respondents also claimed that no appeal lies to the Tribunal from an order under Section 271FA.

The Court held that the petitioner's reasons did not amount to a reasonable cause for the delay in filing the returns. Despite the provision allowing a penalty of Rs.500 per day, only Rs.100 per day was imposed. The Court concluded that the petitioner's contentions were not acceptable, and thus, the writ petition was dismissed.

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