TaxTMI 
TaxTMI 
2012 (4) TMI 152
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....e I T Act, 1961. 2. The brief facts of the case are as follows:- The appellant is a Public Charitable trust engaged in various charitable activities such as community development programmes, village adoption programmes, humanitarian relief programmes, medical and education programmes etc. It was formed on 07.04.2003. The appellant has been granted registration under section 12A of the Act and also secured recognition under section 80G(5)(vi) of the Act vide order dated 27.10.2006. 2.1 The return of income for the assessment year under consideration was filed on 22/3/2006. Notice was issued by the Joint Director of Income Tax (Exemptions), Range 17, Bangalore on 14/5/2007 requiring the appellant to show cause as to why penalty under....
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....ounting to Rs. 50,600/-, the assessee carried the matter in appeal before the first appellate authority. 4. The first appellate authority confirmed the view taken by the JDIT(E) in imposing the penalty by observing thus:- "I have considered the explanation of the appellant and I am of the opinion that there is no reasonable cause for delay in filing the return of income. Therefore, the penalty is confirmed and the appeal is dismissed". 5. The assessee being aggrieved is in appeal before us. 6. The learned AR submitted that the trust was formed during the previous year relevant to the concerned assessment year. Since the previous year was the first year of the activities of the appellant trust, the appellant was not familiar with....
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....failure'. In the present case, there was no deliberateness or deceptiveness in not filing the return of income within the prescribed time limit. The appellant was under a bonafide belief that securing recognition under section 80G would be a pre requisite for filing the return of income. Also, the trustees of the appellant trust occupy various positions in the settlor company. They devote their time and efforts in the course of employment with the company as a result of which they were not in a position to fully devote their time in the administration of the trust. However, immediately on being appraised, the income tax returns were filed for all the years without any further delay. The delay in filing the return was not intentional or deli....
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....her acted deliberately in defiance of law or was guilty of conduct contumacious or dishonest, or acted in conscious disregard to its obligation. Penalty will not also be imposed merely because it is lawful to do so. Whether penalty should be imposed for failure to perform a statutory obligation is a matter of discretion of the authority to be exercised judicially and on a consideration of all the relevant circumstances. Even if a minimum penalty is prescribed, the authority competent to impose the penalty will be justified in refusing to impose penalty when there is a technical or venial breach of the provision of the Act or where the breach flows from a bona fide belief that the offender is not liable to act in the manner prescribed by the....