TaxTMI 
TaxTMI 
2024 (5) TMI 1286
X X X X Extracts X X X X
X X X X Extracts X X X X
.... that penalty u/s 271FA was levied for the reason that the assessee did not file return / Statement of Financial Transaction (SFT) u/s 285BA(1) of the Act, even though, there were no reportable transaction. Referring to page 19 of the Paper Book which is the Audit Report, the Ld. Counsel for the assessee submits that the assessee is engaged in the single primary business of Leasing / Renting of immovable property and has only one reportable segment. The Ld. Counsel for the assessee referring to page 67 of the Paper Book, which is the Form no. 3CD of the Tax Audit Report, submits that even in the Tax Audit Report, it is reported that nature of business of Assessee is real estate and renting services. Further, referring to page no. 79 of the ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....sessee was not required to file SFT and even otherwise no penalty is leviable on technical default. 4. The Ld. Counsel for the assessee placing reliance on the decision of the Visakhapatnam Bench of the Tribunal in the case of M/s Guntur District Co-operative Central Bank Ltd. vs. DIT (Intelligence & Criminal Investigation), in ITA No. 355-360/Viz/2018 dated 25.01.2019 submits that on identical facts the Tribunal held that no penalty u/s 271FA can be levied if there are no reportable transaction and no return was filed by the assessee. The Ld. Counsel for the assessee submits that the Tribunal held that if there are no reportable transactions, the assessee is not obliged to file the AIR and levy of penalty u/s 271FA is unjustified. 5. Ld.....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ncome Tax Rules. We noticed that penalty were levied ignoring the submissions of the assessee that there are no reportable transaction and therefore the provision of Section 285BA(1) of the Act are not applicable simply because the assessee did not file return of SFT. 8. We observed that the Visakhapatnam Bench of the Tribunal considered whether penalty u/s 271FA is leviable in a situation where there are no reportable transaction and no return of AIR was filed by the assessee and the Tribunal held that the penalty is not attracted, observing as under: 7. We have heard both the parties and perused the material placed on record. As per section 271FA, a person who is responsible for registering, or maintaining books of account or other doc....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ctions 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. The Ld.DIT issued notice u/s 285BA on 24.08.2017 which was served on the assessee on 27.03.2017 and the assessee responded to the notice by furnishing the 'Nil' transactions and the department did not make out a case that the assessee had the recorded reportable/specified transactions in the relevant financial year. We are unable accept the contention of the Ld. DR not to accept fresh argument of the assessee with regard to non requirement of filing the AIR in the absence of reportable transaction and the same is rejected. ....