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2019 (5) TMI 1059 - AT - Income TaxPenalty u/s 271FA r.w.s. 274 - non filing of AIR return without considering reasonable cause - HELD THAT:- Assessee has not given any reply to the numerous notices issued by the Income Tax Department deleting total penalty will not be a good message to the various government departments who are bound to supply the information to the ITD which per se helps in checking the tax evasion as well as assessing the correct income of various persons. Assessing authority has computed the penalty @₹ 500/- per day which was changed from ₹ 100/- to ₹ 500/- w.e.f. 1.4.2018, therefore the penalty if any has to be computed @₹ 100/- per day. When the assessee did not appear on 15.12.2015 why the action was not taken against the assessee, the reason is best known to the revenue authorities who waited for almost 2 years to compute the penalty. From 10.9.2015 to 15.12.2015 a total number of days for the failure on the part of the assessee is 97 days. In our considered view, totality of the facts and in the interest of justice and fair to both the parties we hold that sustaining the penalty of ₹ 9700/- (97 days x ₹ 100/- per day) on the assessee will be justified and it will be a message to the government authorities, so that in future such casual approach should not be taken and compliance to the statutory requirements including reply of notices by Income Tax Department should be adhered to. We accordingly sustain penalty of ₹ 9,700/- and delete the remaining amount of penalty of ₹ 3,41,800/- and partly allow the assessee’s appeal. - Appeal of the assessee is partly allowed.
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