TMI Blog2018 (6) TMI 1457X X X X Extracts X X X X X X X X Extracts X X X X ..... of the authority to be exercised judicially and on a consideration of all the relevant circumstances. We note that considering these facts and circumstances and position of law as explained above, the penalty should not be levied. - Decided in favour of assessee. - ITA No. 7360 And 5565/MUM/2016 - - - Dated:- 27-6-2018 - SHRI SAKTIJIT DEY, HON BLE JUDICIAL MEMBER AND SHRI Dr. A.L. SAINI, HON BLE ACCOUNTANT MEMBER For The Assessee : Shri Rajkumar G. Tonali CA. For The Department : Shri Virendra Singh DR ORDER PERDr.A.L. SAINI, ACCOUNTANT MEMBER The captioned two appeals filed by the assessee, pertaining to Assessment Years 2014-15 and 2015-16, are directed against the separate orders passed by the Dire ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... re was delay in filing AIR for the financial year 2013-14.The filing of AIR is a statutory requirement which has to be filed by the assessee on or before due date of filing. The onus is on the assessee to fulfil such statutory obligations within the stipulated time. In the assessee s case under consideration, the AIR for the financial year 2013-14 was due to be filed on 31/08/2014 which is filed on 13/09/2016. Therefore, a show-cause notice was issued by the Director of Income Tax (I CI) on 29/09/2016 asking the assessee, Sub-Registrar Thane-6 , to explain the reasons as to why penalty should not be levied under section 271FA of the Act for delay in filing the AIR for the financial year 2013-14. 5. In response to the show-cause notice, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... peal before us. 7. Ld. Authorized Representative for the assessee submitted before us that assessee is a Principal Officer of Sub-Registrar Office, Maharashtra Government, Konkan Bhavan, Navi Mumbai, and is engaged in the registration process of all agreements. The assessee was liable to furnish an AIR under the provisions of section 285BA of the Act in respect of specified financial transactions by 31/08/2014 for financial year 2013-14 and 31/08/2015 for financial year 2014-15 respectively but due to shortage of manpower and inadequate infrastructure in his office, he could not file the AIR on time. The ld AR also submitted that the assessee always depends on private agencies to File AIR, and moreover, when he joined the office as a S ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cilities in his office, the assessee could not file the AIR report timely,and such delay was beyond his control. Besides, the assessee always depends upon private agency to prepare the AIR report. 10. The assessee took the charge of his office on 06/06/2016 and prior to that, no responsible person has been appointed to file the AIR report. Soon after his appointment in the office, as a Sub-Registrar, he came to know about inactive TAN number of his office and took immediate steps to make it active and this process has resulted into delay, in filing the AIR report. After joining the said office on 06/06/2016, he took personal attention and the delayed AIR reports for the financial years 2013-14 and 2014-15 have been filed online. 11. S ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d in refusing to impose penalty, when there is a technical or venial breach of the provisions of the Act or where the breach flows from a bona fide belief that the offender is not liable to act in the manner prescribed by the statute. Those in charge of the affairs of the company in failing to register the company as a dealer acted in the honest and genuine belief that the company was not a dealer. Granting that they erred, no case for imposing penalty was made out. We note that in assessee s case under consideration, the assessee was depending on the private agency to file the AIR report and there was also shortage of manpower and inadequate infrastructure facility in his office, and moreover, the TAN Number of the assessee was inact ..... X X X X Extracts X X X X X X X X Extracts X X X X
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