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2018 (11) TMI 427 - AT - Income TaxPenalty u/s 272A(2)(e) - return was not filed within due date prescribed u/s 139(4A) following the advice given by the Accounts Manger of the trust - reasonable cause for the failure - bonafide belief - delay due to ignorance of law - Held that:- The provisions of section 139(4A) lay down that every religious or charitable institution whose income was exempt u/s 11 and 12 of the Act is required to furnish return of income of the previous year within due date prescribed u/s 139(1) of the Act. In the present case, undisputedly, there is delay in filing return of income by 541 days. As held in the case of Aditanar Educational Institution [1997 (2) TMI 3 - SUPREME COURT] the assessee claiming exemption u/ss.11 and 12 of the Act, should mandatorily file return of income as the assessee’s claim for exemption could be decided by the department only after relevant material is placed before the department by filing the return of income. The provisions of section 273-B mandates that penalty is not to be levied if a reasonable cause is established. In the present case, the Parliament had inserted section 272A in the provisions of section 273-B only by Finance Act, 2012 w.e.f. 01/04/2012. Therefore, during the previous year relevant to assessment year under consideration, levy of penalty is mandatory even if there is a reasonable cause. Therefore, no merit in the submission made by the assessee. The Act does not confer any discretion on the AO not to levy penalty in case reasonable cause is shown to exist. - decided against assessee.
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