TaxTMI 
TaxTMI 
2011 (9) TMI 445
X X X X Extracts X X X X
X X X X Extracts X X X X
.... "1. On the facts and in the circumstances of the case, the authorities below were incorrect and unjustified in levying and sustaining the penalty u/s 271F incorrectly and wrongly levied and now wrongly confirmed. 2. On the facts and in the circumstances of the case and in law, the order passed u/s 271F is illegal invalid and void ab initio. 3. On the facts and in the circumstances of the case and in law, the order passed u/s 271F is without any jurisdiction and hence not applicable to the facts of the case. 4. On the facts and in the circumstances of the case, the authorities below were incorrect and unjustified in dismissing the appeal of the assessee an also then incorrect in confirming the penalty." 3. The....
X X X X Extracts X X X X
X X X X Extracts X X X X
....but evidence in this regard was not submitted before the AO. The CIT (A) confirmed the penalty u/s 271F as the assessee has not complied with the notices u/s 153A/153C and also did not comply with the penalty notices u/s 271F issued by the AO. Assessee did not submit any explanation in respect of the penalty notices. CIT (A) treated the assessee's action as non-complying and non-cooperative in the assessment and penalty proceedings. He confirmed the penalties in these years. 5. While pleading on behalf of the assessee, the learned AR submitted that the levy of penalty u/s 271F has been wrongly levied and the same is wrongly confirmed by the CIT (A). The assessee has filed regular returns and in this regard, an affidavit of its partner, S....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ub-section (1) of section 139, fails to furnish such return before the end of the relevant assessment year, he shall be liable to pay, by way of penalty, a sum of five thousand rupees. The penalty can also be levied when a person is required to furnish a return of income as required by the proviso to sub-section (1) of section 139. Prior to 1.4.2006, the firms were not required to be filed return u/s 139(1) if its total income or the total income of any other person in respect of which it is assessable under this Act during the previous year does not exceed the maximum amount, which is not chargeable to income-tax. Thus, prior to 1.4.2006, assessee was not liable to file return where income was not taxable. The assessment orders passed for ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ed under sub-section (1) of section 139 or by the proviso to that sub-section and fails to furnish the return upto the end of the relevant assessment year. Assessee is not falling under that as no time limit is fixed to file the return u/s 153A. He also pleaded that as held by the various courts, the penalty provisions must be construed strictly. For this proposition, he relied on the following decisions :- (i) CIT v. T.V. Sundaram Iyengar & Sons (P) Ltd., [1975] 101 ITR 764 (SC); (ii) Asstt. Commissioner v. Velliappa Textiles Ltd. [2003] 263 ITR 550. (iii) Engineers Impex (P.) Ltd. v. D.D. Sharma [2000] 244 ITR 247. Further he also pleaded that if the penalty is levied for not filing the original r....
X X X X Extracts X X X X
X X X X Extracts X X X X
....n a prescribed manner along with other particulars as may be prescribed and the provisions of Income-tax Act shall, as far as may be, apply, accordingly as if such return was a return required to be furnished u/s 139. In view of these, we are not in agreement with the pleadings of the learned AR that the provisions of section 271F cannot be applied where the return is required to be furnished u/s 153C read with section 153A of the Income-tax Act. Although there is no minimum time required to be give in the notice to be issued u/s 153A for filing the return and also no separate form has been prescribed, however, assessee was under legal obligation to file the return of income. The phrase has been used 'so far as may be' in section 153A. In o....