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2019 (10) TMI 983 - ITAT CHANDIGARHLevying penalty u/s 271(l)(c) - assessee failed to furnish the return of income - HELD THAT:- AO issued notice u/s 148 in March, 2015 and return from the very same sources of income stood already filed on 7.11.2012 wherein the TDS and self assessment tax upto the said date stood paid. It is also a fact pleaded on record that the assessee is not a habitual defaulter and this is one and only time wherein penalty u/s 271(1)(c) or any other penalty has been visited upon the assessee. When a copy of the return filed on 7.11.2012 which has been treated as non-est is compared with the assessed income as available in assessment order passed u/s 143(3)/148 of the Act, it is seen that the only addition made is addition by way of a disallowance of deduction u/s 80C of Insurance premium - in order to uphold the penalty order, the Revenue would want to argue that the explanation for filing of the return late was not on account of a bonafide inadvertent mistake. No evidence or argument to support such a prayer is on record. The fact that the late filing of return on 07.11.2012 was beyond time, hence non-est is not in dispute. The fact that the very same return from the same sources has been refilled in response to notice u/s 148 in March, 2015 is not in dispute. There is nothing on record to show that the assessee had, as opposed to an inadvertent mistake, any reason to conceal as the very same return has been refilled with no changes or additions. Thus, the arguments on behalf of the Revenue that without the issuance of notice u/s 148 in March, 2015, the assessee would not have filed its return in the peculiar facts cannot be accepted. The assessee has filed its return on 7.11.2012. It cannot be wished away. No doubt the said return is not a valid return in the eyes of law, however, it is a necessary evidence to be taken into consideration for examining the argument whether the non filing of a valid return was a case of bonafide, inadvertent mistake or deliberate act of concealment or furnishing of inaccurate particulars. AO has accepted the return from the very same sources of income and has only made the addition by way of a disallowance of deduction u/s 80C supports the consistent argument. In these facts, I find myself unable to uphold the order wherein the penalty for concealment has been levied and upheld. Accepting the explanation of the assessee who is also not a habitual defaulter, non-filing of return on time was on account of inadvertent bonafide mistake and accepting addition where the filing of appeal was more expensive is a valid explanation consistently on record. Penalty provisions are not attracted - Decided in favour of assessee
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