Document Fragment View

Matching Fragments

In the case of HTSL Community Service Trust vs. JDIT(EXEMPTIONS) (2012) 31 CCH 0251 Bang. Trib Charitable Trust--Failure to furnish return within due date--Penalty u/s 272A--Assessee, a registered public charitable trust filed return of income belatedly after the expiry of the due date--AO levied penalty u/s 272A(2)(e) for not filing the return of income within the due date as prescribed in section 139 of the Act--Penalty may be imposed u/s 272A(2)(e) for failure to furnish the return of income in accordance with the provisions of section 139(4A) rws 139(1)--An attempt of deliberateness or deceptiveness is associated with the word 'failure'--In the present case, there was no deliberateness or deceptiveness in not filing the return of income within the prescribed time limit--Assessee was under a bonafide belief that securing recognition u/s 80G would be a pre requisite for filing the return of income--However, immediately on being appraised, the income tax returns were filed for all the years without any further delay--The delay in filing the return was not intentional or deliberate--Since the entire income was applied towards the charitable activities, no tax was payable for the assessment year under consideration--As a result of late filing of the return, there was no loss of revenue to the Government--Assessee had no ulterior motive to defraud the revenue and had not acted dishonestly or negligently--Therefore, there Jhalawar Kendriya Sahakari Bank Ltd., Jhalawar.

was sufficient/ reasonable cause for the delay in furnishing the return of income--Hence, assessee trust not liable for penalty u/s 272A(2)(e) of the Act for delay in filing the return of income This principal is also applicable in the present case. As there was no loss to the revenue nor brought on record.

In the case of Shyam Gopal Charitable Trust v/s DIT(Exmp.) 290 ITR 99(Del. HC) it has been held that "18. We are of the view that the appellant ought not to be made to suffer penalty, in the peculiar facts of the present case, for having acted upon an advice of its chartered accountant and not filing the IT returns in time. We should not be understood as laying down a general proposition that in all cases where the assessee fails to file returns in time and attributes the failure to an advice by its chartered accountant, that by itself constitutes a sufficient explanation in terms of s. 273B of the Act. Each case would have to be tested on its merits by the authorities concerned or the Court, as the case may be, for coming to a conclusion that sufficient grounds in the context of s. 273B have been made out for not imposing a penalty for the failure to file returns within the time stipulated.

19. On the facts of the present case, we are of the considered view that the appellant has proved that there was reasonable cause within the meaning of s. 273B of the Act for the failure to file IT returns for the relevant assessment years within the time stipulated and, therefore, no penalty was required to be levied in terms of s. 272A(2)(e) of the Act.

3. View favorable to the assessee: Further it is also settled that if case both the side has been referred then it is the settled legal position that to remove the undue hardship and considering the decision of supreme Court in case of CIT Vs. Vegetable Products Ltd. 88 ITR 192 (SC) where it is held that when two views are possible on an issue, the view in favour of the assessee has to be preferred. And also many High court also held the same.

And in the case of HTSL Community Service Trust vs. JDIT (Exemptions) (2012) 31 CCH 0251 (Bang.Trib.), the Coordinate Bench of the Tribunal held as under :-

"Charitable Trust--Failure to furnish return within due date--Penalty u/s 272A--Assessee, a registered public charitable trust filed return of Jhalawar Kendriya Sahakari Bank Ltd., Jhalawar.
income belatedly after the expiry of the due date--AO levied penalty u/s 272A(2)(e) for not filing the return of income within the due date as prescribed in section 139 of the Act--Penalty may be imposed u/s 272A(2)(e) for failure to furnish the return of income in accordance with the provisions of section 139(4A) rws 139(1)--An attempt of deliberateness or deceptiveness is associated with the word 'failure'-- In the present case, there was no deliberateness or deceptiveness in not filing the return of income within the prescribed time limit-- Assessee was under a bonafide belief that securing recognition u/s 80G would be a pre requisite for filing the return of income--However, immediately on being appraised, the income tax returns were filed for all the years without any further delay--The delay in filing the return was not intentional or deliberate--Since the entire income was applied towards the charitable activities, no tax was payable for the assessment year under consideration--As a result of late filing of the return, there was no loss of revenue to the Government--Assessee had no ulterior motive to defraud the revenue and had not acted dishonestly or negligently--Therefore, there was sufficient/ reasonable cause for the delay in furnishing the return of income--Hence, assessee trust not liable for penalty u/s 272A(2)(e) of the Act for delay in filing the return of income This principal is also applicable in the present case. As there was no loss to the revenue nor brought on record."