2017 (8) TMI 373

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....ention of Section 275 being time barred when the penalty proceedings were initiated on 30.11.2006 with the issuance of notice under Section 285BA(5) of Income Tax Act,1961? (ii) Whether the action of DIT (CIB), in imposing penalty of Rs. 15,600/- on the appellant, is unjustified specially when the appellant had filed Annual Information Returns before the receipt of the show cause notice from DIT (CIB), Chandigarh? (iii) Whether the learned DIT (CIB), erred in not considering the frequent transfers of Sub Registrars (seven officers in five years) in the office of Sub Registrar Bhiwani as a reasonable cause?" (iv) Whether the present appeallant who was posted as Sub Registrar, Bhiwani on dated 16.08.2010 is responsible for the lapse committed by his predecessors? 3. A few facts relevant for the decision of the controversy involved as narrated in ITA No.105 of 2017 may be noticed. The appellant, Sub Registrar, Bhiwani is engaged in registration of sale deeds under the Registration Act, 1908 (in short, "the 1908 Act") and various other activities assigned by the State Government as well as the Deputy Commissioner in the District. He was posted as such at B....

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....grounds 2 to 4 remained unattended. Therefore, the appellant filed miscellaneous application seeking rectification of the order passed by the Tribunal. Vide order dated 06.09.2016, Annexure A.9, the said application was dismissed by the Tribunal. Hence, the instant appeals by the appellant. 4. We have heard the learned counsel for the appellant. 5. The primary issue that arises for consideration in the present appeals is whether the failure of the appellant in furnishing AIR in time could justify the levy of penalty under Section 271FA of the Act. The matter is no longer res integra. The issue involved in the present appeals stands concluded against the appellant in ITA No.344 of 2013 (The Joint Sub Registrar, Sangat, District Bathinda Vs. Director of Income Tax (CIB), Chandigarh) decided on 21.07.2014. After considering the relevant statutory provisions and the case law on the point, it was recorded therein as under:- "7.Section 285BA was inserted in the Act by Finance Act 2003 with effect from 1.4.2004. However, Finance (No.2) Act, 2004 substituted new provision in place of old provision with effect from 1.4.2005 in the following terms:- "285BA. (1) Any pe....

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....ed; or (e) transaction for taking or accepting any loan or deposit, which may be prescribed. Provided that the Board may prescribe different values for different transactions in respect of different persons having regard to the nature of such transaction : Provided further that the value or, as the case may be, the aggregate value of such transactions during a financial year so prescribed shall not be less than fifty thousand rupees. (4) Where the prescribed income-tax authority considers that the annual information return furnished under sub-section (1) is defective, he may intimate the defect to the person who has furnished such return and give him an opportunity of rectifying the defect within a period of one month from the date of such intimation or within such further period which, on an application made in this behalf, the prescribed income-tax authority may, in his discretion, allow; and if the defect is not rectified within the said period of one month or, as the case may be, the further period so allowed, then, notwithstanding anything contained in any other provision of this Act, such return shall be treated as an invalid return and the provisio....

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....from the date of intimation or any further period which the prescribed income tax authority may allow. In the event of failure to cure the defect, such return shall be treated to be invalid and all consequences under the Act shall follow as if no such return had been filed. According to sub section (5), where any person who is required to furnish an annual information return has not furnished the same within the prescribed time, the prescribed income tax authority may serve upon such person a notice requiring him to furnish such return within a period not exceeding sixty days from the date of service of such notice. 9. A notification has been issued on 1.12.2004 prescribing Rule 114E relating to furnishing of annual information return. The form and manner in which the annual information return shall be furnished has been prescribed in this rule. Clause (2) of the Table prescribes the persons who shall furnish annual information return. The nature of transactions is specified in corresponding entry of Clause (3) thereof. Under Rule 114E, such return shall be furnished in Form No.61A and shall be verified in the manner indicated therein. It has also been provided th....