TaxTMI 
TaxTMI 
2015 (2) TMI 1034
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.... Hon'ble Apex Court in the case of Hindustan Steel Ltd. vs. State of Orissa, (83 ITR 26), applicable to the case of the assessee. 3. The CIT(A) has erred in law and on facts in not following accurately the decision given by the Hon'ble Gujrat High Court in the case of Patan Nagrik Sahakari Bank Ltd. vs. DIT(CIB) Special Civil Application No. 14675 of 2010. 4. That the CIT(A) erred in law and on facts in upholding the time barred case by ignoring the provisions of Section 275(1)(c) of the Income Tax Act, 1961. In this the Ld. Assessing Authority had passed the order on 6.1.2011 which was beyond the six month of the date from which penalty proceedings initiated. As per order it is cleared that notice for default was issued by the Ld. AO u/s. 285A(5) of the Income Tax Act, 1961, on 30.11.2006 on being default of the appellant for not filing the AIR return in due date. 5. The appellant craves leave to add, amend or alter any of the grounds of appeal at the time of hearing of the appeal, if deemed necessary, in the interest of justice and equity." 2. The facts relating to the issue in dispute are that the Sub- Registrar, Bhiwani, Distt. Bhiwani (Haryana), was required to file Annual....
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....he necessary copy of provisional receipts for the F.Ys 2007-08 & 2008-09 as a proof of having filed the AIRs with NSDL. The hearing was adjourned for 29.11.2010 at the request of the person. On 29.11.2010, Shri Ami Chand, Tehsildar-cum-Sub-Registrar, Bhiwani (Haryana), the assessee, attended the office and filed a copy of provisional receipt issued by the NSDL for the financial years 2007-08 along with its written reply, which the AO has reproduced in para no. 5.3 at Page. 3 and 4 of the penalty order. 2.3 The Director of Income Tax (CIB), Chandigarh considered the documentary evidence filed by the assessee along with the return filed by the assessee and rejected the explanation of the assessee and held that the assessee has filed its AIR late for all the financial years in dispute which make the assessee a habitual defaulter without any concern/ respect for the law of the land. In these circumstances, Ld. DIT(CIB), Chandigarh of the I.T. Act @100 per day for default for the financial years under consideration and completed the order on 6.1.2010 u/s. 271FA of the I.T. Act. 3. Aggrieved with the penalty order dated 6.1.2010, assessed filed an appeal before the Ld. First Appellate ....
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....AIR in respect of specified financial transactions registered or recorded by him during the financial years under consideration. According to record the Sub- Registrar, Bhiwani is required to file the AIR for the financial years 2004-05 to 2008-09 as under:- Financial Year Due Date for filing of AIR 2004-05 30.11.2005 2005-06 31.08.2006 2006-07 31.08.2007 2007-08 31.08.2008 2008-09 31.08.2009 7.1 As per the record, the assessee has filed the Annual Information Return very late in respect of purchase and sale of immovable property and valued at Rs. 30 lacs or more for the financial years in dispute i.e. 2004-05 to 2008-09, the details of the same is as under:- S. No. Financial Year Due date for filing Filed on Delay (in days) 1 2004-05 30.11.2005 03.02.2010 1525 days 2 2005-06 31.08.2006 03.02.2010 1251 days 3 2006-07 31.08.2007 03.02.2010 886 days 4 2007-08 31.08.2008 26.11.2010 817 days 5 2008-09 31.08.2009 03.02.2010 156 days 7.2 According to section 271FA of the I.T. Act, "If a person who is required to furnish the AIR as required under sub-section (1) of section 285BA, fails to furnish such return within the time prescribed under that s....
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....rate. So far as I understand that there was no willful non compliance of the obligation on the part of this office was not going to gain any thing by such non compliance nor it was to lose so this by compliance there of the non compliance thus has been due to ignorance of the statutory provision. In fact Tehsildar Bhiwani has to perform duty as Sub Registrar in addition to his normal officials functions revenue authority and Executive Magistrate and a/so other duties earmarked by D.C for attending upon the State Ministers & Higher Officials. The provisions of filing the Annual Information Return being new statutory provision this office was not aware of the legal obligation in this regard because the office of Inspector General of registration, Registrar of the Govt. had neither provided this office with necessary instruction regarding this legal obligation, As such this office had not deliberately make & defiance of law nor is guilty of conduct contumacious or dishonest. This office even had not acted in conscious disregard of its obligation in regarding filing of AIR though Norcompliance of this legal obligation attracts the penal provisions as contained in section 271FA but the ....
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....ions regarding filing of AIR by the Filer with NSDL are effective since financial year 2004-05. Moreover, ignorance of law is not a valid ground in the eyes of law. 2) Further the Filer's argument that there is no revenue loss to the Department is also not acceptable as the information under AIR forms the basis for selection of cases under scrutiny, through CASS, and also for further investigation of cases, both procedures are means for detection of tax evasion and concealment. Thus non filing of AIR under question has revenue implications and also the tax evader derives indirect benefit through it. The Filer's contentions are, therefore, not accepted. Lack of mens-rea has also not been proved, the onus of which lies on the Filer. 3) The presence/absence of intention causing the delay is not relevant. The (Hay whether malafide or bonafide makes no difference as far as penalty u/ s 271FA of the Act is concerned. 4) The Filer whether a Govt. body or a Non-Govt. body also makes no difference as the law is applicable with equal force to each and every Filer unless there are motives imputed for personal interests etc., which is not the case here. 5) The Filer has also stated....
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.... order dated 6.1.2011 passed u/s. 271FA of the Act. Ld. First Appellate Tribunal has upheld the order of the AO by partly allowed the appeal and has given his finding vide para no. 5 Page 3 to 4 of his order which is reproduced as under:- 5. I have carefully considered the issue and the submissions made by the AR. Section 285BA in the present form was inserted w.e.f. 1.4.2005 casting obligation on the Filer to furnish AIR within the specified date as per rule 114E and Form No. 61A. 5.1 Perusal of record shows that notices for filing AIRs for different years have been issued on 30.11.2006, 11.5.2007, 10.7.2008, 17.4.2009, 13.8.2009, 20.11.2009 & 27.7.2010 which remained un complied with. The issue of the appellant is covered by the case of Patan Nagrik Sarkari Bank Ltd. Vs DIT (supra) wherein it was held as under:- Penalty u/ s 271FA - Delay in filing annual information return - Reasonable cause - Petitioner, a co-operative bank situated in a mofussil area, was exempt from income tax under the provisions of s. 80P(2(a)(i) upto asstt. yr. 2006-07 and was not having the assistance of chartered accountants - In view of said explanation of the petitioner it would be reasonable to bel....
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....r the Financial Years under consideration in respect of the transactions of purchase and sale by any person of the immovable property valued at Rs. 30 lacs or more by 31st August, immediately following the financial year in which the transaction is registered or recorded. In the event of failure to furnish the AIR, the penalty is leviable under section 271FA. For the sake of convenience the provisions of section 285BA(1) and Section 271FA is reproduced as under:- "Section 285BA(1):- Any person, being an assessee; or the prescribed person in the case of an office of Government, who is responsible for registering, or maintaining books of account or other document containing a record of any specified financial transaction, under any law for the time being in force, shall furnish an annual information return, in respect of such specified financial transactions which is registered or recorded by him during any financial year beginning on or after the 1st day of April, 2004 and information relating to which is relevant and required for the purposes of the Act, to the prescribed income tax authority or such other authority or agency as may be prescribed." "Section 271FA:- If a person ....