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2021 (12) TMI 536 - AT - Income TaxLevy of penalty u/s. 272A(2)(e) - assessee did not voluntarily file its return of income within the time limit prescribed under the Income Tax Act - Proof of deliberateness or deceptiveness in not filing the return of income - HELD THAT:- We find that assessee has submitted reasonable cause for the delay and placed reliance upon several case laws in support of these both before the AO as well as CIT(A). None of them have been dealt with by the AO or CIT(A). This is complete disregard of judicial discipline. It is noted that in the case of HTSL community Service Trust [2012 (4) TMI 152 - ITAT BANGALORE] has held that an attempt of deliberateness or deceptiveness is the associated with word “failure” - also in the case of Vatavaran Trust [2006 (2) TMI 225 - ITAT DELHI-I] and held that there was excess of expenditure over income in all assessment years, assessee’s belief that it was not obliged to file return of income u/s. 139(4A) was bona fide and this constituted reasonable cause, hence penalty u/s. 272(A)(2) (e) is not leviable. We are of the considered opinion, there was a reasonable cause for the assessee for the delay and the case laws referred above are duly applicable. Hence, in the background of aforesaid discussion and precedent, we set aside the orders of the authorities below and delete the penalty. We find that assessee’s plea in the present case duly falls under the ken of aforesaid case laws wherein similar penalty has been deleted. No contrary decision has been produced before us. As held by Hon’ble Supreme Court in Motilal Padampat Sugar Mills' [1978 (12) TMI 45 - SUPREME COURT] that there is no presumption that everyone known law. - Decided in favour of assessee.
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