2011 (2) TMI 1610 - AT - Income Tax

Summary

Issues involved: Whether the Director of Income Tax (CIB), Chandigarh was justified in penalizing the appellant u/s 271FA of the Income Tax Act, 1961.

Summary:
The Appellate Tribunal ITAT Chandigarh heard four appeals filed by the Sub Registrar, Tehsil Office, Khamano, Fatehgarh Sahib, regarding penalty imposed u/s 271FA of the Income Tax Act. The penalty was calculated at Rs.100/- per day for each financial year under consideration. The appellant challenged the penalty on grounds of not considering their replies and alleged errors in the penalty amounts for different financial years.

The Tribunal deliberated on whether the appellant could directly appeal before the Tribunal without approaching the CIT(Appeals) first. The CBDT clarification highlighted that the CIT(Appeals) has the authority to dispose of penalties u/s 271FA and can hear appeals against orders passed by the DIT (CIB). The Tribunal concluded that the appellant should have first appealed to the CIT(Appeals) before approaching the Tribunal directly. Consequently, all four appeals were dismissed.

In conclusion, the Tribunal upheld the penalty imposed by the Director of Income Tax (CIB), Chandigarh, and dismissed all four appeals filed by the appellant for not following the proper appeal procedure.