2017 (3) TMI 428

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....ahya This appeal by the assessee is directed against order of CIT-A dated 03.09.2014 and pertains to assessment year 2006-07. 2. The grounds of appeal read as under: 1. On the facts and circumstances of the appellant's case and in law the Ld. CIT-A erred in confirming the penalty of Rs. 5,000/- u/s 271F of the Income Tax Act, 1961. 2. The Appellant craves leaves to add, to ....

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....owards goodwill at the time of retirement was not chargeable to tax. The return was filed only when the assessee came to know that the receipt was taxable. The AO however did not accept the contention of the assessee on the ground that right from AY 2003-04 the assessee has no where mentioned in any returns about his being partner in any firm and other details like share of profit/remuneration/cap....

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..... The return was flied only when assessee learnt that the receipt of goodwill was taxable." 5. However, the Ld. CIT-A was not convinced he held that there has already been the change of law u/s. 55(2), hence assessee's claim of ignorance of law cannot be accepted. Ld. CIT-A proceeded to confirm the levy of penalty of Rs. 5,000/- u/s. 271(F). 6. Against the above order assessee's is an appeal....

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....as already been the change of law whereby the effect of decisions relied by the assessee is no longer applicable. 6. Upon careful consideration in our consider opinion the reasonable cause attributed by the assessee for failure to comply with the provision of filing return on due time is reasonable of acceptable. Hence the assessee case false under the sweep of Section 273 B of the I.T. Act. Th....