TaxTMI 
TaxTMI 
TaxTMI 
2018 (6) TMI 1457
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.... dated 28/10/2016 and 13/07/2016 respectively. 2. Since these two appeals filed by the same assessee for different assessment years and identical issues are involved, therefore, these have been clubbed and heard together and a consolidated order is being passed for the sake of convenience and brevity. The assessee's appeal in ITA No. 7360/MUM/2016 for the Assessment Year 2014-15 is taken-up, as the lead case. 3. The solitary grievance of the assessee in these appeals is that the Director of Income Tax (I & CI) was erred in levying penalty of Rs. 3,17,200/- under section271FA for the Assessment Year 2014-15 and Rs. 1,26,000/- for the Assessment Year 2015-16. 4. The facts of the case may be briefly stated. The assessee, 'Sub-Registrar Than....
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.... his office, the AIR could not be filed within time, as prescribed under the Act. The assessee also informed that the said AIR is prepared through private agency and, therefore, there was a minor delay in filing the AIR. The assessee also submitted a copythe AIR report to the Director of Income Tax (I & CI), which was filed by him late, online on 13/09/2016. The assessee, 'Sub-Registrar Thane-6', also submitted before the Director of Income Tax (I & CI),that he had taken the charge of the office on 06/06/2016 and soon after taking the charge, the delayed AIR for the financial years 2013-14 and 2014-15 have been filed online by paying personal attention. The assessee also submitted a copy of online receipt of AIR for the financial years 201....
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....ontrol, hence penalty under section 271FA should not be levied. 8. On the other hand, ld. Departmental Representative for the Revenue, submitted before us that ignorance of law is not an excuse, hence, the AIR report should be filed within the time limit prescribed under section 285BA of the Act, read with Rule 114E of the Income Tax Rules, 1962. The assessee, 'Sub-Registrar Thane-6' has to file the AIR return on time. There was continues default in filing the AIR return, therefore, penalty should be levied under section 271FA of the Act. 9. We have given a careful consideration to the rival submissions and perused the material available on record. We note that the assessee was liable to furnish the AIR return under the provisions of sect....
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....ay be, for any failure referred to in the said section 271FA, if he proves that there was reasonable cause for the said failure. We note that in the case of Hindustan Steel Ltd Vs. State of Orissa, (1972) 83 ITR 0026, the Hon'ble Supreme court held that merely a technical or venial breach of the provisions of the Act does not attract the penalty. The relevant quote is given below: "5. Under the Act penalty may be imposed for failure to register as a dealer : s. 9(1), r/w s. 25(1) (a) of the Act. But the liability to pay penalty does not arise merely upon proof of default in registering as a dealer. An order imposing penalty for failure to carry out a statutory obligation is the result of a quasi- criminal proceeding, and penalty will not....