9911796707
TMI Blog2014 (1) TMI 1282X X X X Extracts X X X X X X X X Extracts X X X X ..... ection 92B are not applicable to the transaction of investments made by the appellant in the shares of subsidiary companies. Based on this bonafide belief the appellant did not obtain the report in Form 3CEB on or before 30th September, 2009. The appellant prays that there was a reasonable cause for not obtaining the repot within the prescribed time limit and the penalty levied u/s 271BA may be deleted. 3. On the acts and circumstances of the case the Learned Commissioner of Income Tax (Appeals) has erred in rejecting the claim of the appellant and there was a reasonable cause in delay in obtaining the report u/s 92E of the Income Tax Act, 1961. The appellant therefore prays that penalty levied u/s 271BA is bad in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nafide mistaken belief. He has further submitted that technically there was no tax effect upon the assessee-company in not furnishing the said report in time, hence the said default of the assessee was not intentional. He has further submitted that only one transaction of investment in equity shares was made with its subsidiary company by the assessee. He has brought our attention to the order of the AO passed under Section 271BA to contend that the AO had failed to consider the explanation of assessee of his reasonable cause of bonafide belief that transaction of investment in equity shares of subsidiary company did not fall within the scope of Section 92B. On the other hand, the learned DR, before us, has submitted that penalty had been i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... one hundred thousand rupees. 273B. Penalty not to be imposed in curtain case.-Notwithstanding anything contained in the provisions of clause (b) of sub-section (1) of section 271, section 271A, section 271AA, section 271B section 271BA, Section 271BB, Section 271C, section 271CA, section 271D, Section 271E, section 271F, section 271FA, section 271FB, section 271G, clause (c) or clause (d) of sub-section (1) or sub-section (2) of section 272A, sub-section (1) of section 272AA or section 272B or sub-section (1) or sub-section (1A) of section 272BB or sub-section (1) of section 272BBB or clause (b) of sub-section (1) or clause (b) or clause (c) of sub-section (2) of section 273, no penalty shall be imposable on the p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Section 273B provides that it is mandatory not to impose penalty, if the assessee gives a reasonable cause for his failure in furnishing the particulars as required by the provisions of the Section 271BA. It may be further observed that in the case in hand, the AO did not consider the explanation of reasonable cause of bonafide belief given by the assessee in its failure to furnish the report under Section 92E in time. Even, the learned CIT(A) did not bother to look into or consider the said explanation given by the assessee. The authorities below have imposed the penalty holding that the same is mandatorily imposable under the provisions of Section 271BA of the Act. The authorities below failed to take note of pro ..... X X X X Extracts X X X X X X X X Extracts X X X X
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