New User   Login      
Tax Management India .com TMI - Tax Management India. Com
Extracts
Home List
← Previous Next →

2016 (9) TMI 147 - ITAT KOLKATA

2016 (9) TMI 147 - ITAT KOLKATA - TMI - Penalty under section 271FA - whether there is sufficient cause for the assessee for non-compliance with the requirement of Section 285BA of the Act till the notice was served? - Held that:- The order of the Director of Income Tax (Intelligence and Criminal investigation) does not speak as to how the assessee stood to gain by contravening with the provisions of Section 285BA of the Act or the act of assessee resulted in any loss to the Revenue. Further, it .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

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 from a bonafide ignorance of .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

Per Shri K. Narasimha Chary, JM: Both these appeals by assessee are arising out of separate penalty orders of DIT(I&CI), Kolkata passed u/s. 271FA of the Income Tax Act, 1961 (hereinafter referred to as the Act ) vide Nos. DIT(I&CI)/Kol/271FA/2010-11/MDCCBL/2012-13 and DIT(I&CI)/Kol/271FA/2011-12/MDCCBL/2012-13 dated 19.03.2013. Since grounds are common and facts are identical, we dispose of both these appeals by this common order for the sake of convenience. Since grounds are commo .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ied 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 ambi .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

and Criminal investigation) served penalty order dated 19.3.2013 levying penalty of ₹ 56,100/- for the delay of 561 days in furnishing AIR. 2. Challenging the imposition of penalty, the assessee preferred these appeals on the following common revised grounds except variation in amounts. : 1. For that on the facts and in the circumstances of the case, the Ld. DIT was not justified in imposing penalty to the tune of ₹ 56,100/- (for AY 2011-12) and ₹ 19,600/- (for AY 2012-13) u/s .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ssessee complied with the direction within the extended time, it is not open for the authorities to resort to the penalty 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 adverti .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ce with the requirement of Section 285BA of the Act till the notice was served? 5. Facts are admitted. There is no dispute that the assessee, Malda District Central Cooperative Bank Ltd is an entity falling within the ambit of Section 285BA of the Act, it failed to comply with this legal requirement for the period of 2012-13 as such a notice dated 14.2.2013 was issued by the AO questioning the same. On a request made on behalf of the representative of the Assessee, on 28.2.2013, time was extende .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ends that there cannot be such an ignorance in view of the department conducting so much of awareness campaign and the assessee complying with other obligations under the Act. 6. Learned AR placed reliance on a decision reported in Motilal Padampat Sugal Mills Co. Ltd vs State of UP [118 ITR 326(SC) for the principle that there is no presumption in law that every 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 h .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

hout making references to the history of the enactments. In such circumstances, it would be a travesty of truth and justice to hold that the assessee knew or ought to have known the correct law and comply therewith, even though, in fact, he was not aware of the provisions. 7. It is well established by the decision of the Supreme Court in Hindustan Steel Ltd. v. State of Orissa [1972] 83 ITR 26 that the liability to pay penalty does not arise merely upon proof of default in complying with the sta .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

gation, it is stated, is a matter of discretion of the authority concerned to be exercised judicially on a consideration of all relevant circumstances and even if a minimum penalty is prescribed, the authority competent to impose the penalty will be justified in refusing to impose it when there is a technical or venial breach of the provisions of the Act or where the breach flows from a bonafide belief that the offender is not liable to act in the manner prescribed by the statute... He further p .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

he 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 Ltd. v. State of Orissa [1972] 83 ITR 26. Lastly, he brought to our notice a decision dated 20-02-2015 rendered byLucknow Bench of the Tribunal in ITA No. 699/LKW/20 .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

alleged breach, nothing more is alleged against the assessee. As a matter of fact, the Director of Income Tax (Intelligence and Criminal investigation) who passed the penalty order himself observed in his order vide para No 3 that the assessee got the accounts of all branches consolidated and audited, and also filed Income Tax/TDS returns. The order of the Director of Income Tax (Intelligence and Criminal investigation) does not speak as to how the assessee stood to gain by contravening with th .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

 

 

 

 

 



|| Home || Acts and Rules || Notifications || Circulars || Schedules || Tariff || Forms || Case Laws || Manuals ||

|| About us || Contact us || Disclaimer || Terms of Use || Privacy Policy || TMI Database || Members || Site Map ||

© Taxmanagementindia.com [A unit of MS Knowledge Processing Pvt. Ltd.] All rights reserved.

Go to Mobile Version