TMI Blog2021 (12) TMI 556X X X X Extracts X X X X X X X X Extracts X X X X ..... ay in finalization of accounts and filing return of income for all these assessment years. But, the delay in filing of return of income was neither intentional nor to derive any undue benefit. Illness of Managing Trustee of the trust during the relevant period will definitely comes under reasonable cause as provided u/s. 273B of the Act for not filing return of income within due date specified under the Act. We further noted that the assessee neither intentionally filed return of income belatedly, nor derived any benefit by filing belated return. In fact, the assessee was having excess of expenditure over income for all these years and thus, by not filing return of income within due date specified under the Act, there is no loss of reve ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er consideration was passed out of time, invalid, passed without jurisdiction and not sustainable both on facts and in law and ought to have appreciated that the starting point for calculating the limitation prescribed for imposing penalty under the Act should be reckoned from February 2012 and not from May 2012 while vitiating the consequential penalty order under consideration. 4. The CIT (Appeals) failed to appreciate that in any event the levy of penalty u/s 272A(2)(e) of the Act for the failure to furnish the return of Income under sub section 4A or sub section 4C of section 139 of the Act or to furnish it within the time allowed and in the manner required under those sub sections was wrong, erroneous, unjustified, incorrect and n ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... bmitted that the Managing Trustee, Smt. Chitra Ganapathy, was falling ill from the year 2006 and up to assessment year 2010-11, this has resulted in delayed filing of return of income. The AO however, was not convinced with the explanations furnished by the assessee and according to him, there is no reasonable cause as provided u/s. 273B of the Act for not filing return of income within the due date specified under the Act and thus, opined that the reasons given by the assessee, ill health of managing trustee does not come under reasonable cause and hence, opined that it is a fit case to levy penalty u/s. 272A(2)(e) of the Act. Accordingly, levied penalty @ ₹ 100 for every day of delay u/s. 272A(2)(e) of the Act for failure to file re ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e, the present appeals filed by the assessee are posted for hearing to decide ground no 4 5 filed by the assessee. 5. The Ld. AR for the assessee submitted that the Ld. CIT(A) erred in sustaining penalty levied by the AO u/s. 272A(2)(e) of the Act for failure to furnish return of income under sub section (4A) of section 139 of the Act, within time allowed under the Act, even though the assessee has explained reasons for not filing returns in time and such reasons does comes under reasonable cause as provided u/s. 273B of the Act. The Ld. AR for the assessee further referring to the return of income filed for assessment year 2007-08 to 2010-11 submitted that the assessee is having excess expenditure over income for all those years and t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to take care day to day affairs of the assessee which resulted in delay in finalization of accounts and filing return of income for all these assessment years. But, the delay in filing of return of income was neither intentional nor to derive any undue benefit. We have gone through the reasons given by the AO to reject arguments of the assessee for levying of penalty u/s. 272A(2)(e) of the Act, in light of arguments of the assessee, and we ourselves do not subscribe to the reasons given by the AO for the simple reason that, when the AO himself has recorded a finding that medical records submitted by the assessee shows that Managing Trustee Smt. Chitra Ganapathy, was suffering from illness for the period 2010-11, he ought not to have rejecte ..... X X X X Extracts X X X X X X X X Extracts X X X X
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