Income Tax Appellate Tribunal - Chennai
Sub Registrar Office , Karur vs Assessee
IN THE INCOME TAX APPELLATE TRIBUNAL
BENCH 'D', CHENNAI
BEFORE
Dr. O.K.NARAYANAN, VICE PRESIDENT
and
SHRI HARI OM MARATHA, JUDICIAL MEMBER
.....
I.T.A. No.1833(Mds)/2010
Assessment Year: 2009-10
Sub-Registrar, The Director of Income-
Near Court, Trichy Rd., vs. tax(CIB),
Kulithalai-639104 Chennai.
TAN - CHES24434F.
(Appellant) (Respondent)
AND
I.T.A. No.1785(Mds)/2010
Assessment Year: 2009-10
Sub-Registrar, The Director of Income-
No.4/138, PWD Revenue vs. tax(CIB),
Main Street, Chennai.
Pudukottai-628103.
TAN - MRISO3729F.
(Appellant) (Respondent)
Appellants by : Shri S.Sridhar
Respondent by : Shri K.E.B.Rengarajan,
Jr. Standing Counsel
2 ITA Nos.1833 &1785(Mds)/2010
ORDER
PER Dr.O.K.NARAYANAN, VICE-PRESIDENT:
These two appeals filed by the two assessees relate to the assessment year 2009-10. These appeals are directed against the orders of the Director of Income-tax(CIB), Chennai, both dated 23-9-2010 imposing penalties under section 271FA of the Income-tax Act, 1961. The assessees are Sub-registrars in the service of the Government of Tamil Nadu. Penalties of ` 38,600/- and ` 38,700/- respectively in the cases of these assessees were levied for the default of non filing of Annual Information Returns.
2. We heard both sides and considered the issue. It is to be seen that there is no provision available in the Income-tax Act, 1961, which enables the assessees to file direct appeals before the Income- tax Appellate Tribunal in the matter of a penalty order passed under section 271FA, by the Director of Income-tax(CIB). Therefore, these appeals are liable to be dismissed in limine.
3 ITA Nos.1833 &1785(Mds)/2010
3. But we appreciate the contention of the learned counsel appearing for the assessees that section 271FA of the Income-tax Act, 1961 falls under Chapter XXI of the Income-tax Act, 1961, whereby a penalty order is appealable before the Commissioner of Income-tax(Appeals) under section 246A(1)(q) of the Income-tax Act, 1961. When enquired, the learned counsel explained that appeals were filed directly before the Tribunal, as the demand notice issued by the Director of Income-tax(CIB) has suggested that appeals lie before the Tribunal.
4. In these circumstances we find that it may be open for the assessees to file appeals before the Commissioner of Income- tax(Appeals), subject to the legal opinion that they may obtain. As the demand notice issued by the Director of Income-tax(CIB) mentioned the appellate authority as the Tribunal, there seems to be a reasonable cause for the assessees for not filing appeals before the Commissioner of Income-tax(Appeals). Therefore we hope that the Commissioner of Income-tax(Appeals) will consider the question of limitation sympathetically.
4 ITA Nos.1833 &1785(Mds)/2010
5. With the above observations these two appeals are dismissed.
Order pronounced in the open Court at the time of hearing on Tuesday, the 7th day of June, 2011 at Chennai.
Sd/- Sd/-
(Hari Om Maratha) (Dr. O.K.Narayanan)
Judicial Member Vice-President
Chennai,
Dated the 7th June, 2011.
V.A.P.
Copy to: (1) Appellant
(2) Respondent
(3) CIT
(4) CIT(A)
(5) D.R.
(6) G.F.