2019 (5) TMI 1059

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....d in the circumstances of the case and in law, the learned DIT(I&CI) has erred in imposing penalty of Rs. 3,51,500/- under section 271FA of the Act non filing of AIR return without considering reasonable cause. The appellant prays to grant relief as stated above. The appellant craves, leave to add, alter or modify any of the foregoing grounds of appeal if and when necessary." 3. Briefly stated facts as culled out from the records are that the assessee is local authority under the State Government of Madhya Pradesh in the name of Office of Sub Registrar Jaora, Court Area, Jaora, Ratlam. As per the provisions of Section 285BA of the Act the assessee is required to submit a statement in Form 61B for every financial year by 31st May of fol....

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....ya Pradesh part. It was further submitted that the Annual Information Report was finally submitted on 14.12.2017 containing all necessary information as required. He prayed that the penalty should not have been relieved as the Government Department was facing technical problem due to which necessary information could not prepared. 5. Per contra Ld. Departmental Representative vehemently argued and supporting the order of Ld. Director of Income Tax (I&CI). He also submitted that there was no compliance to the number of notices issued to the assessee which shows the casual approach of the assessee towards the notices issued by Income Tax Department. 6. We have heard rival contentions and perused the records placed before us. The assessee is....

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....t levying penalty in certain cases if the assessee proves that there was a reasonable cause for the failure. This section also refers to the penalty of Section 271FA of the Act. Reference was made to various correspondences with the Chief Secretary, Govt. of Madhya Pradesh, Department of Commercial Taxes and Chief Commissioner of Income Tax as well as Secretary, Finance Department of Revenue which talks about the technical problem due to which non integration of the departments portal with the Income Tax Departmental portal for PAN authentication was not achieved. This problem was solved at later stage and finally assessee filed Annual Information Report for financial year 2014-15 on 14.12.2017. Certainly there was a delay but there was re....