TMI Blog2016 (9) TMI 147X X X X Extracts X X X X X X X X Extracts X X X X ..... sistance of tax practitioners specialising in this field, is a well known fact, and it is equally well known fact that the legislation in this field undergoes so frequent changes and amendments that it is not possible for even a person specialising in this field, including the tax administrator, to claim that he knows what exactly the law is on a particular given day or period without making references to the history of the enactments. In these circumstances, no mala fides can be attributed to the assessee so as to invoke the penalty proceedings under section 271FA of the Act and the learned Director of Income Tax (Intelligence and Criminal investigation) should have taken note that the breach is only technical or venial breach of the p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ble for registering, or, maintaining books of account or other document containing a record of any specified financial transaction, under any law for the time being in force, shall furnish an annual information return, in respect of such specified financial transaction which is registered or recorded by him during any financial year beginning on or after the 1st day of April, 2004 and information relating to which is relevant and required for the purposes of this Act, to the prescribed income-tax or authority or agency. Malda District Central Cooperative Bank Ltd an assessee falling within the ambit of Section 285BA failed to comply with this legal requirement for the period of 2012- 13. A notice dated 14.2.2013 was issued by the AO. On ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... proceedings under section 271 FA of the Act. According to him, non-compliance with the requirement of Section 285BA of the Act till the notice, was non-intentional but only due to the fact that the assessee was not aware of the existence of such an obligation. Learned DR, on the other hand, submitted that the department is periodically launching awareness campaigns by advertising in the print and visual media about the obligation of the specified persons for filing of AIR by them, and it is not open for the assessee to contend that they are not aware of the obligation because the assessee got the accounts of all branches consolidated and audited, filed income Tax/TDS returns and aware of the obligations under the Act. 4. Basing on the ab ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ry persons knows the law. He also placed reliance on a decision reported in WTO vs S.P. Jayakumar (1983) 3 ITD 221 (Mad) wherein it was held,- 6. That the tax laws of this country are complex and complicated and often require for compliance, therewith the assistance of tax practitioners specialising in this field, is a well known fact. It is equally well known fact that the legislation in this field undergoes so frequent changes and amendments that it is not possible for even a person specialising in this field, including the tax administrator, to claim that he knows what exactly the law is on a particular given day or period without making references to the history of the enactments. In such circumstances, it would be a travesty of tru ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , for the observation that,- It cannot be considered that each assessee, whether small or big, must rush to an income-tax specialist, practising as a lawyer or a chartered accountant, for his income-tax assessment especially when the income earned or being earned by him was too low. It cannot indeed be such a policy of the Government. In fact, on the other hand, an effort was being made to simplify the law so that the people could pursue their assessments before the department in a simple manner and that they do not have necessarily to depend on the professionals. 7. Again, it is not each default that must be punished and in this respect, support can be had on the observations of the Supreme Court in the case of Hindustan Steel Lt ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d, is a well known fact, and it is equally well known fact that the legislation in this field undergoes so frequent changes and amendments that it is not possible for even a person specialising in this field, including the tax administrator, to claim that he knows what exactly the law is on a particular given day or period without making references to the history of the enactments. In these circumstances, no mala fides can be attributed to the assessee so as to invoke the penalty proceedings under section 271FA of the Act and the learned Director of Income Tax (Intelligence and Criminal investigation) should have taken note that the breach is only technical or venial breach of the provisions of the Act and such a breach could have flown fro ..... X X X X Extracts X X X X X X X X Extracts X X X X
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