TaxTMI 
TaxTMI 
2026 (2) TMI 1045
X X X X Extracts X X X X
X X X X Extracts X X X X
....ke submission on facts of the case. 4) The Ld CIT(A) erred in dismissing the appeal without considering that the Ld Jt./Addl.DIT(I&CI) Bangalore has erred in levying penalty u/s 271FAA of the I T Act, 1961 for the failure to furnish the correction Statement of Financial Transactions (SFT) without appreciating the facts and circumstances of the case. 5) The Ld CIT(A) erred in dismissing the appeal without considering that the Ld Jt/Addl DIT(I&CI) has erred in levying the penalty against the principle of Nature Justice and Equity without appreciating the various technical glitches/difficulties faced by the appellant in filing the said correction Statement of Financial Transaction and therefore the penalty order needs to be quashed. 6) The Ld CIT(A) erred in dismissing the appeal without considering that the Ld Jt/Addl.DIT(I&CI) Bangalore has erred in levying penalty u/s 271 FAA of the I T Act, 1961 without appreciating the fact that the appellant has got reasonable cause for the said failure of submitting the report within the specified date. 7) For these and such other grounds as may be advanced on or before the date of hearing. it is prayed that ....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... reasons for the said delay and also filed an affidavit of the authorised representative and prayed to condone the said delay. The appellant also raised several grounds and submitted that the non-submission of the correction statement was neither willful nor wanton and prayed to allow the appeal. The Ld.CIT(A) had observed that the reasons given by the appellant to condone the said delay is without any supporting details and therefore rejected the said delay condonation application and dismissed the appeal as not admitted. 3. As against the said order, the present appeal has been filed before this Tribunal. 4. At the time of hearing, the Ld.AR submitted that the appellant being a Government of Karnataka organisation, is not having sufficient staff to carry out all the works and the temporary staff appointed in the office had committed several mistakes and therefore submitted that the non-filing of the correction statement in form no. 61A is not intentional. The Ld.AR also submitted two paper books and also enclosed the written submissions and other documents and prayed that the penalty is not warranted. 5. The Ld.DR submitted that the appellant being a statutory authority,....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... out various mistakes and therefore sought for the correction statement. The said correction statement should be filed through the portal of the department and the deponent being the new incumbent had no knowledge about the earlier statement filed in form 61A and therefore he has to collect the details and thereafter only, file the correction statement as requested by the authorities. 9. The appellant in the written submissions, had narrated the various problems faced by them while trying to upload a statement of financial statements or correction statements of the same which are extracted for easy reference: "a. In the SROs office, the data of the sale documents for registration will be entered in a book called "Index II Register" which is often recorded in local language, i.e. Kannada. For uploading SFTs in Form 61A, the information should be translated to English and data should be in Excel format. Further all the data required to be uploaded will not be available in the "Index II Register". Usually, the clerical staff or the persons hired on temporary basis (daily wage basis) will enter the data required for uploading SFT in Excel format. In general, these persons w....
X X X X Extracts X X X X
X X X X Extracts X X X X
....9;s mail/phone number or to the mail/number of some other person registered earlier, which the present officer/staff are not usually aware. Without knowing all these procedures, the SRO office staff tries to activate ITDREIN and upload the data or tries to file Correction Statement in the Reporting Portal, which will not happen. And the user will not know the exact reasons for not getting the data uploaded. d. Usually existing SRO's user ID and password would be linked to the TAN in the Reporting Portal. This TAN will be linked to the personal PAN of the existing SRO in e-Filing portal. When the existing SRO is transferred out and new SRO is posted, the incumbent SRO has to ensure that the user ID and password are changed to enable to log in into the Reporting portal. Without knowing the proper procedure for change of this link, the SROs cannot upload the original SFTs/ file correction statement in the Reporting Portal. Lack of technical knowledge will be the main hurdle for getting the ITDREIN activated and SFTs/Correction statement uploaded in time. Hence, there will be problem for the incumbent SRO for getting the Reporting Portal opened for the purpose of uploading....
X X X X Extracts X X X X
X X X X Extracts X X X X
....available in the Reporting Portal. The data which was error free up to the stage of uploading, will end up with many errors, when we look at the DQRs generated subsequently after 48 hours. The most common errors reported in the DQR will be like i. Inconsistent Aggregated Transaction Amount-Seller ii. Inconsistent Aggregated Transaction Amount-buyer iii. Blank Fathers Name for individual without PAN iv. Failed identification number for no PAN case v. Failed seller/Transferor Transaction Relation vi. No buyer/Transferee vii. Failed seller/Transferor Transaction relation At the stage of data uploading, the Reporting Entity will not be knowing the exact reason for the errors. That is why, filing of Correction Statement is difficult within the stipulated time. i. Problems faced in collecting data to file Correction Statement: After coming to know about the errors through DQRs, the user has to get the correct data from the physical documents as well as data available in the Kaveri Portal. Factors like lack of knowledge about the exact data to be rectified and to be corrected, busy schedule in the of....