TaxTMI 
TaxTMI 
2019 (2) TMI 43
X X X X Extracts X X X X
X X X X Extracts X X X X
....IR for the F.Y 2010-11 required to be filed on or before 31st August 2011. In the instant case, the assessee did not file the AIR for the F.Y. 2010-11 to 2015-16 relevant to the A.Ys 2011-12 to 2016-17 before the due date. Therefore, the Director of Income Tax (Intelligence & Criminal Investigation) [DIT (I&CI)] (in short 'DIT'), Hyderabad had issued notice u/s 274 r.w.s. 271FA of the Act and called for explanation from the assessee as to why penalty should not be levied for the assessee's failure to file AIR before the due date. The assessee filed explanation, but not being convinced with the explanation offered by the assessee, the DIT imposed penalty u/s 271FA for the F.Y. 2010-11 to 2015-16 as under : F.Y. A.Y. Penalty (Rs.) 2010-11 2011-12 2,08,000 2011-12 2012-13 1,71,400 2012-13 2013-14 1,34,900 F.Y. A.Y. Penalty (Rs.) 2013-14 2014-15 98,400 2014-15 2015-16 61,900 2015-16 2016-17 27,800 3. Aggrieved by the order of the Ld.DIT, the assessee went on appeal before the CIT(A) and the Ld.CIT(A) confirmed the penalty imposed by the Ld.DIT. The Ld.CIT(A) relied on the decisions of Joint Sub Registrar, Sangat (51 taxmann.com 197 and Sub-Registrar, Bhiwan....
X X X X Extracts X X X X
X X X X Extracts X X X X
....has to be filed by a person who has recorded the transaction and person who fails to furnish such return within time period prescribed u/s 285BA(2) of the Act, shall be liable to pay penalty u/s 271FA of the Act for a sum of Rs. 100/- for everyday during the period which the failure continues. Combined reading of section 271FA and section 285BA shows that a person is obliged to furnish the AIR, only, when there is existence of reportable transaction or specified transaction which required to be reported u/s 285BA of the Act. In case of no reportable transaction/ specified transaction during the financial year, there is no requirement to file the AIR. Thus, if any of the assessee or person not having entered into the reportable transaction/specified transaction mentioned u/s 285BA of the Act need not furnish a statement or the return. In the instant case, as per the acknowledgement placed by the Ld.AR in the paper book, there were no reportable transactions/specified transactions which required to be reported u/s 285BA of the Act r.w.Rule 114E of Income Tax Rules. Therefore, there is no obligation cast upon the assessee to fie the return u/s 285BA for the F.Y. 2010-11 and 2011-12. T....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ision in the case of Joint Sub Registrar, Sangat and Sub-Registrar, Bhiwani (supra). 10. During the appeal hearing, the Ld.AR argued that the DIT has issued the notice u/s 285BA(4) for rectifying the defect on 24.03.2017 granting time period of 4 days for rectifying the defects and to file the revised/supplementary return on or before 28.03.2017. The said notice was served on the assessee on 27.03.2017, thus the time available to the assessee to file the supplementary return was only one day. The month of March being the end of the financial year and the Cooperative Bank was busy with the year end closing work could not file the supplementary return within the time period allowed by the DIT. There was no deliberate or intentional default. Similarly, the Penalty notice was issued by the DIT vide notice dated 04.04.2017 and served on the assessee after two/three days and there was no time available to the assessee to furnish the explanation, hence requested to set aside the order of the Ld.CIT(A) and cancel the penalty imposed by the Ld.DIT. 11. On the other hand, the Ld.DR relied on the orders of the lower authorities and the decisions relied upon by the Ld.CIT(A). 12. We have he....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ever, in this case the question is whether the penalty is leviable for the entire period from the due date to furnishing the original return or till supplementary return is a question which required to be answered. 13. The assessee filed the AIR belatedly, but it was found defective in as much as not incorporating some of the transactions which require to be reported u/s 285BA of the Act. The DIT issued the notices u/s 285BA of the Act 24.03.2017 and directed the assessee to file the supplementary return rectifying the defects on or before 28.03.2017 for all the assessment years involved. The notices issued by the DIT were stated to be served on assessee on 27.03.2017 and in response, the assessee filed the supplementary returns rectifying the defects as under: F.Y A.Y. Date of filing the supplementary AIR 2012-13 2013-14 25.04.2017. 2013-14 2014-15 27.04.2017. 2014-15 2015-16 25.04.2017. 2015-16 2016-17 25.10.2017. 14. During the appeal hearing, the Ld.AR argued that for the A.Ys 2013- 14 to 2015-16(FY 2012-13 to 2014-15) the assessee has filed revised returns or the supplementary returns rectifying the defects within 30 days from the date of receipt of the....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... leviable for the A.Y. 2013-14 to 2015- 16 for delay in filing the supplementary return rectifying the defects. 17. For the A.Y. 2016-17, the assessee filed the supplementary return on 25.10.2017 with 210 days delay. Since the notice was received by the assessee on 27.03.2017, we consider it is reasonable to allow the time limit of at least 29 days from the date of receipt of the notice as provided u/s 285BA(4) of the Act, as the Act provides time limit of less than 30 days for rectifying the defects. Thus, the assessee should have filed the rectified return on or before 25.04.2017. The assessee did not furnish any reason for not furnishing the supplementary return on or before 25.04.2017. Though the assessee explained that the reason for not furnishing the return was closing work of year end, the same would be completed by 31st March of the relevant financial year and there is no reason for not furnishing the supplementary return subsequent to completion of the year end closing work. In the instant case, there was a delay of 210 days and as discussed earlier 29 days time limit is allowed for furnishing the return as per the Act and we do not find any reason for not furnishing the....