TMI Blog2016 (11) TMI 659X X X X Extracts X X X X X X X X Extracts X X X X ..... e and further the record does not show that assessee has acted either deliberately in defiance of law or was guilty of conduct contumacious or dishonest or acted in conscious disregard of its obligation. In the circumstances, we hold that assessee was prevented with reasonable cause in filing the returns and there is no deliberate attempt to file the returns belatedly. Thus, we delete the penalty levied u/s. 271F of the Act. - Decided in favour of assessee - I.TA Nos.4324 to 4328/Mum/2015 - - - Dated:- 21-9-2016 - SHIR RAJENDRA, ACCOUNTANT MEMBER AND SHRI SHRI C.N. PRASAD, JUDICIAL MEMBER For The Appellant : Shri Neelkanth For The Respondent : Shri Manjunatha Swamy ORDER PER C.N. PRASAD, JM: All these appeals ar ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... also required to be filed and therefore there is little delay in filing the returns. It was also contended that Chairman/Chief Promoter of the group was unwell/sick and was not attending to the business regularly and he was hospitalized twice. Therefore, it was contended that there was no willful and deliberate delay on the part of the assessee in filing the returns belatedly. It was also contended that assessee has reduced its accounting staff as was no much business and therefore no sufficient staff was left to deal with huge return filing work. It was also contended that the assessee was regular and prompt in filing its returns since inception except on this occasion which was beyond its control. Therefore it was contended that no penalt ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... u/s. 271B r.w. Sec. 273. 5.1. The Ld. Counsel for the assessee further relying on the decision of the Hon ble Supreme Court in the case of Hindustan Steel Ltd., Vs State of Orissa (83 ITR 26) submits that levy of penalty is not automatic. The Assessing Officer has the discretion to impose penalty and such discretion is to be exercised judiciously and no penalty should be imposed where there is a technical or venial breach of the provisions of the Act. The Ld. Counsel for the assessee submits that here there is a reasonable cause within the meaning of Sec. 273B for not filing the returns within the time stipulated in the notice u/s. 153C. Therefore he submits that penalty be deleted. 6. The Ld. Departmental Representative vehemently s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the authorities below and the penalty was levied by the Assessing Officer u/s. 271F which was sustained by the Ld. CIT(A). It was the submission of the assessee that returns were filed regularly and promptly since inception except on this occasion which was beyond the control of the assessee. It was the submission of the assessee that its group companies required to file a total No. of 55 returns followed by search proceedings which necessarily required time and the Chairman/Chief Promotor of the group was unwell/sick and was not attending business regularly and was hospitalized twice. All these submissions of the assessee were not disputed or disbelieved by the Revenue. Therefore, we are of the view that there was no willful or deliberate ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... a quasi-criminal proceedings and penalty should not be imposed unless the party obliged, either acted deliberately in defiance of law or was guilty of conduct contumacious or dishonest or acted in conscious disregard of its obligation. It was also held that penalty also will not imposed merely because it is lawful to do so. In this case the assessee filed returns belatedly and there is reasonable cause in filing the return in time as stated above and further the record does not show that assessee has acted either deliberately in defiance of law or was guilty of conduct contumacious or dishonest or acted in conscious disregard of its obligation. In the circumstances, we hold that assessee was prevented with reasonable cause in filing the re ..... X X X X Extracts X X X X X X X X Extracts X X X X
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