2023 (3) TMI 342

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....levy of penalty of Rs. 5,000/- under section 271F of the Income Tax Act, 1961 (hereinafter referred to as 'the Act') relating to the Assessment Year (A.Y) 2010-11 to 2012-13 respectively. 2. The brief facts of the case is that the assessee, an individual and Proprietor of M/s. Shreeji Trading Company which is engaged in the business of trading in gold, silver bullions and other precious metals. The assessee filed his Returns of Income under section 139 of the Act for the Assessment Year 2010-11 on 15.10.2010; for the Assessment Year 2011-12 on 28.09.2011 and for the Assessment Year 2012-13 on 29.03.2013. A Search operation u/s. 132(1) of the Act was carried out at the residence and business premises of the assessee on 20.05.2013. Thereaf....

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.... total disregard to the facts of the case and submissions made by the assessee, levied penalty of Rs. 5,000/- each for all the three Assessment Years vide orders dated 30.09.2020 u/s. 271F of the Act. 3. Aggrieved against the penalty orders, the assessee filed appeals before Ld. Commissioner of Income Tax (Appeals)-11, Ahmedabad. The assessee has not appeared before the ld. CIT(A) inspite of 15 opportunities given to the assessee. Therefore the ld. CIT(A) confirmed the levy of penalty u/s. 271F of the Act, relying upon few ITAT decisions. 4. Aggrieved against the same, the assessee is in appeal before us raising the following Grounds of Appeal: 1. The grounds of appeal mentioned hereunder are without prejudice to one another.....

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....ssment year was not filed before the end of that year. It cannot be imposed in a case where return of income is filed after the statutorily prescribed due date, but prior to the end of the relevant assessment year. (d) The AO referred to the later part of clause (a) of section 153A and held that other provisions of the Act including provisions of section 271F of the Act are applicable in the case of the search related assessments and as the appellant has not filed the return of the income within 30 days from the receipt of notice issued u/s. 153A/153C of the Act, is liable for penal action u/s 271F of the Act. Here it is pertinent to note that in stretching/co-relating the applicability of provisions of section 271F to section 153A....

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....bai on 08.08.2014 and simultaneously filed return of income with the AO. Copy of order u/s.245D (1) is attached at Page 4 to 16. Thus, since there is reasonable cause for delay in filing return of income no penalty could be levied. (f) In view of the above, the appellant most respectfully submits that penalty levied on misapprehension of facts may kindly be deleted. 5. Per contra, the Ld. Sr. D.R. Mr. B. D. Gupta appearing for the Revenue supported the orders passed by the Lower Authorities and pleaded to confirm the levy of penalty. 6. We have given our thoughtful consideration and perused the materials available on record. The first argument of the assessee namely that the penalty provisions of Section 271F are not applicab....