No Penalty for Delay in filing Return since Assessee was unaware of IT Provisions and Dept did not inform responsibilities: ITAT [Read Order]

Return Filing

In Sub Registrar Dhansura v. Director of Income Tax, the Ahmedabad bench of Income Tax Appellate Tribunal (ITAT) recently ruled that no penalty can be levied for delay in filing Annual Income Tax Return since the Assessee was unaware of Income Tax provisions and the department did not informed him about the said responsibility.

Assessee in the instant case is a Government servant having the charge of Sub Registrar and he has failed to file Annual Information Report (AIR) on time.

Thereafter, the Assessee has filed a letter stating that he is having the charge of Sub Registrar and he is newly directly recorded and hence did not had any knowledge. Further, he was not provided any information from AIR from his office. He has filed the return and hence return will be foiled in time in future. But the Revenue refused to accept the contention of the Assessee and imposed penalty accordingly.

When the matter reached before the Tribunal on second appeal, the bench comprising Judicial Member Mahavir Prasad and Accountant Member N.K.Billaiya noted the fact that the Assessee is a newly incumbent with the office and was not aware of the income tax provisions.

“Moreover, department authority did not inform in above said responsibilities of during the same. Moreover, income tax was paid on time therefore, no loss to the revenue,” the bench said .

The bench further held that “Assessee in the present case was having reasonable cause for delay filing on AIR and benefit of section 273B should be given to the Assessee.  While perusing the material facts it is clear that the Assessee is a newly appointed staff and he may not aware of the income tax provisions. In such circumstances it is not possible to impose penalty”. Therefore the Tribunal deleted the penalty imposed by the Revenue.

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