2019 (10) TMI 899

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....s challenged the imposition of penalty on the assessee u/s 272A(2)(e) of the Income-tax Act,1961 ['the Act' for short]. 2. Under the provisions of section 139(4A) of the Act, every assessee which has receipts of income derived from property held under trust or other legal obligation has to file Return of income irrespective of its tax liability, if its income exceeds maximum amount which is not chargeable to income-tax, before giving effect to the provisions of sections 11 and 12 of the Act. The abovesaid provisions read as follows: "139(4A) Every person in receipt of income derived from property held under trust or other legal obligation wholly for charitable or religious purposes or in part only for such purposes, or o....

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....rn of income was due to reasonable cause. The reasonable cause pleaded by the assessee for consideration by the Revenue authorities was that the President of the Trust was a very senior citizen of more than 80 years of age. He was under bona fide belief that since income of the Trust is exempt u/s 10(23C)(iiiad) of the Act, there was no requirement to file return of income. When the correct legal position was apprised, return of income was filed immediately. It was also pleaded that there was no tax liability and that the assessee was primary and pre-university education for students in rural area. The above plea for reasonable cause was not accepted by the revenue authorities and hence the assessee is in appeal before us. 4. We head the....