Income Tax Appellate Tribunal - Ahmedabad
Textile Traders Co.Op. Bank Ltd.,, ... vs The Director Of Income Tax , (I & Ci),, ... on 1 February, 2018
आयकर अपील य अ धकरण, अहमदाबाद यायपीठ 'A', अहमदाबाद ।
IN THE INCOME TAX APPELLATE TRIBUNAL "A" BENCH, AHMEDABAD सव ी एस.एस.गोदारा, या यक सद य एवं द प कुमार के डया, लेखा सद य के सम ।
BEFORE SHRI S.S. GODARA, JUDICIAL MEMBER & SHRI PRADIP KUMAR KEDIA, ACCOUNTANT MEMBER आयकर अपील सं./I.T.A. No.1500/Ahd/2015 ( नधा रण वष / Assessment Year : 2014-15) Textile Traders Coop. Bank बनाम/ The Director of Income Ltd., 6Vasanti Vihar Vs. tax (I&CI), Ahmedabad Society, Nr. Mithakhali 6 Road, Navrangpura, Ahmedabad थायी ले खा सं . /जीआइआर सं . / PAN/GIR No. : AABAT1016F (अपीलाथ' /Appellant) .. ( (यथ' / Respondent) अपीलाथ' ओर से / Appellant by : Shri Dhirajlal Shah, A.R (यथ' क* ओर से/Respondent by : Shri Dinesh Singh, Sr.DR ु वाई क* तार ख / सन Date of Hearing 29/01/2018 घोषणा क* तार ख /Date of Pronounce ment 01/ 02 /2018 आदे श / O R D E R PER PRADIP KUMAR KEDIA - AM:
The captioned appeal has been filed at the instance of the assessee against the imposition of penalty of Rs. 27,100/- under section 271FA of the Act by the Director of Income Tax (I&CI) [DIT in short] Ahmedabad vide its order dated 24.03.2015.ITA No.1500/Ahd/2015
Textile traders Coop. Bank Ltd. vs. DIT(I&CI) Asst.Year - 2014-15 -2-
2. It was noticed by the DIT that the assessee has failed to filed certain financial statements the prescribed manner and furnish the same to the agency authorized to receive such returns on or before 31.08.2014 concerning F.Y. 2013-14. The DIT accordingly imposed penalty of Rs. 27,700/- by invoking section 271FA of the Act for period of default committed by the assessee.
3. Aggrieved assessee preferred appeal before the Tribunal.
4. With the assistance with the Ld. Authorised Representative for the assessee and Ld. Departmental Representative for the Revenue, we find that the assessee was required to filed the prescribed Form (Form 61A) with the agency (NSDL) authorized on this behalf in conformity with Rule 114E of the Income tax Rule 1962 read with section 285BA of the Act. The due date for filing the statement of financial transaction is stated on 31.08.2014 for the relevant financial year. We find that the assessee has filed the prescribed form before the due date on 14.08.2014 albeit manually instead of filing the same electronically with the authorized agency as required. Thus, the compliance of the statutory limitation period was made albeit fraught with technical defects. It is also noticed that the return has been ultimately uploaded electronically on 12.03.2015. Therefore the requirement of the provisions of law has been broadly complied with. In these facts, we ITA No.1500/Ahd/2015 Textile traders Coop. Bank Ltd. vs. DIT(I&CI) Asst.Year - 2014-15 -3- find that the assessee had made substantial compliance of the requirement of law. The only shortfall was that the return was filed manually instead of electronically which also has been ultimately cured albeit at a subsequent date. Therefore, we are of the opinion that the designated authority ought to have exercised its discretion for imposition of penalty in favour of the assessee and not otherwise. Hence, we cancel the penalty imposed under section 271FA in the circumstances of the case.
5. In the result, appeal of the assessee is allowed.
This Order pronounced in Open Court on 01/ 02/2018
Sd/- Sd/-
(एस.एस.गोदारा) ( द प कुमार के डया)
या यक सद य लेखा सद य
( S.S. GODARA ) (PRADIP KUMAR KEDIA)
JUDICIAL MEMBER ACCOUNTANT MEMBER
Ahmedabad; Dated 01/02/2018