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This appeal of the assessee, for assessment year 2009-10, is directed against the order of the Director of Income-tax (CIB), Chennai, dated 23.9.2010, passed u/s 271FA of the I.T.Act. 1961.
2. Briefly stated, the facts of the case are that on verification of the records, it was noticed that Sub-Registrar's Office No.35, Ambai Road, Melapalayam, TAN: MRIT01634D, had not furnished the Annual Information Report(AIR) as required under sub-section (1) of section 285BA of the Act for the financial year 2008-09 within the prescribed time which was 31.8.2009. Accordingly, a show cause notice was issued to this office seeking explanation for the delay. The Sub- Registrar's office was given opportunity of hearing on 12.4.2010 and 22.9.2010, but on these dates, no representation was made from this office. Consequently, the DIT(CIB) levied penalty u/s 271FA of the Act. Since the assessee has not explained any reasonable cause for the delay in furnishing AIR in time and also for financial years 2006-07 and 2007-08 such AIRs were not filed, he levied a penalty of ` 100/- per day of delay and calculated the same at ` 38,700/- [387 days x ` 100]. Now, the Sub-Registrar has filed this appeal by taking the following grounds:
5. Hence is having a reasonable cause for not complying the provisions cause of Sec.271F of the Income Tax Act 1961.
6. The appellant craves leave to add/alter any of the grounds of appeal before or at the time of hearing."
3. We have heard the rival submissions. The main contention of the appellant is that this Office was under misconception that AIR filed on 22.9.2010 in response to the notice received u/s 271FA of the Act, would automatically be treated as enough compliance and no further explanation was needed against the levy of penalty for not filing it in time. It has been pleaded that failure to comply with the provisions of the Act by the Registering Authority was owing to its ignorance, particularly when it was made available on net, that there was no need of filing a hard copy of the AIR, and also that in-house facilities failed to support filing AIR in time and the appellant had to resort to outsource the same. According to the appellant, this is a reasonable cause as contemplated under section 273B of the Act. In this background, it has been pleaded that penalty levied may be deleted.