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Issues Involved:
1. Imposition of penalty for delayed filing of Annual Information Return (AIR). 2. Jurisdiction of the Tribunal to entertain the appeals. Summary: Issue 1: Imposition of Penalty for Delayed Filing of AIR The assessee challenged the imposition of penalties of Rs. 12,800/-, Rs. 18,200/-, Rs. 30,300/-, and Rs. 11,400/- for delayed filing of AIR for the financial years 2005-06, 2006-07, 2007-08, and 2008-09 respectively. The Director of Income-tax (CIB), Chandigarh, noted that the Sub-Registrar, Tehsil Office, Nakodar, was required to file AIRs by specific due dates but failed to do so, resulting in delays ranging from 114 to 303 days. The penalties were imposed u/s 271FA of the Income-tax Act, 1961, which mandates a penalty of Rs. 100 per day of default. The Sub-Registrar cited reasons such as staff shortage and lack of computer literacy, which were deemed unacceptable as they did not pertain to the relevant periods of delay. Consequently, a total penalty of Rs. 72,700/- was imposed. Issue 2: Jurisdiction of the Tribunal The Tribunal examined whether it had jurisdiction to entertain the appeals against the order passed u/s 271FA. The Ld. DR argued that the appeals should have been filed before the CIT(A) as per section 246A(1)(q) of the Act, and not before the Tribunal. The Tribunal agreed, noting that section 253 of the Act does not grant it jurisdiction to entertain appeals against orders passed u/s 271FA. Section 246A(1)(q) clearly states that appeals against penalties under Chapter XXI, which includes section 271FA, should be filed before the CIT(A). Consequently, the Tribunal dismissed the appeals for lack of jurisdiction but clarified that the assessee could prefer appeals in the appropriate forum. Decision: All appeals filed by the assessee were dismissed for want of jurisdiction. Decision pronounced in the open court on 17th June, 2011.
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