TaxTMI 
TaxTMI 
2022 (10) TMI 822
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....in confirming the action of the AO of imposition of penalty u/s 271FA amounting to Rs.1,43,000/- because of delay in filing of Form SFT as per Section 285 BFA of the I.T. Act, 1961. The action of the ld. CIT(A) is illegal, unjustified, arbitrary and against the facts of the case. Relief may please be granted by deleting the penalty of Rs.1,43,000/- 2. In the facts and circumstances of the case and in law, the ld. CIT(A) has erred in ignoring the fact that assessee had a reasonable cause for the delay in filing FORM SFT and, therefore, penalty was not imposable as per provisions of Section 273B. The action of the ld. CIT(A) is illegal, unjustified, arbitrary and against the facts of the case. Relief may please be granted by deleting the pe....
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....or the purposes of this Act, to the prescribed income-tax or authority or agency Sawai Madhopur Urban Cooperative Bank Limited an assessee falling within the ambit of Section 285BA failed to comply with this legal requirement for the period of 2018-19. A notice dated 20.12.2019 was issued by the AO, which has been received on dated 30.12.2019, The assessee complied with the requirement of Section 285BA by filing the annual information return SFT-003 on dated 12.02.2020, SFT-004 on dated 18.02.2020, SFT-005 on dated 20.02.2020 and the same was accepted and the assessment was concluded. However, subsequently the ADDL/JDIT (Intelligence and Criminal investigation), Jaipur served penalty order dated 20.10.2020 levying penalty of Rs.1,43,000/-....
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....they have no qualified and trained staff for compliance of legal aspects. The ld. AR further submitted that the assessee bank has responded to income tax notice for non-compliance of AIR and the Bank has also appointed a Chartered Accountant for such assignment and such CA has filed the annual information return SFT-003 on 12-02-2020, SFT-004 on 18-02-2020, SFT-005 on 20-02-2020 which were accepted by the Department. Since, there is no mala fide intention on the part of the assessee bank to hide the information, therefore, no penalty was called for under such circumstances. The Bench after meticulously going through the facts of the case finds that the assessee bank i.e.Sawaimadhopur Urban Cooperative Bank Ltd. is an urban bank which is eng....
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.... the period specified in the notice issued under sub-section (5) of section 285BA, he shall pay, by way of penalty, a sum of one thousand rupees for every day during which the failure continues, beginning from the day immediately following the day on which the time specified in such notice for furnishing the statement expires" Thus after going through the co-joint reading of Section 285BA and Section 271FA of the Income Tax Act, we are of the view that it was a statutory obligation on the part of the assessee to furnish AIR as has been specified in Section 285BA of the Act. However, the assessee bank i.e.Sawaimadhopur Urban Cooperative Bank Ltd falling within the ambit of Section 285BA of the Act failed to comply with the legal requirement....