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2022 (9) TMI 875 - ITAT JAIPURPenalty u/s 271F - not filing the return of income for the year under considerations - HELD THAT:- If the benefits were allowed to the assessee then in that eventuality the capital gain arose on the sale of immovable property could have been below taxable limit. It is noteworthy to mention that the provisions of Section 273B categorically mentions that penalty u/s 271F is not leviable in case the assessee proves that there was a reasonable cause for not filing the return of income during the year under consideration, as per provisions of Section 139 of the Act. After analyzing the facts of the present case, Bench finds that AO has passed the assessment order ex-parte taking into consideration the assessee has not advanced any documents pertaining to sale of house in question. It is also noted from the record that the assessee is not having any taxable income and the AO has not given the benefit of indexed cost of acquisition and indexed cost of improvement on the immovable property in question and thus in that eventuality the capital gain arose on the sale of immovable property would have been below taxable limit. This plea of the assessee in view tantamounts to reasonable cause as is prescribed u/s 273B - While giving benefit of the same, the Bench deletes the penalty levied by the AO u/s 271F - Appeal of the assessee is allowed.
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