2022 (12) TMI 681 - AT - Income Tax

Penalty u/s 271F - belated filing of income tax return u/s 139(4) - HELD THAT - From the facts noted the assessee s total income for the relevant Assessment Years was above the taxable limit in spite of the fact that he did not file his return of income within due date as specified under section 139(1) of the Act in any of the above assessment year. Therefore, he is liable for penalty under section 271F of the Act. The CIT(A) is justified in confirming the penalty as per section 271F of the Act. Assessee will not get the immunity as per section 273B of the Act. Therefore, we dismiss the appeals of the assessee.

Summary

Issues:
Challenging penalty imposed under section 271F of the Income Tax Act for belated filing of income tax return under section 139(4) of the Act.

Analysis:
Issue 1: Challenging Penalty Imposed by AO under Section 271F of the Act
The appeals filed by the assessee contested the penalty orders passed by the CIT(A) confirming penalties imposed by the AO under section 271F of the Income Tax Act for late filing of income tax returns under section 139(4) of the Act. The Tribunal noted that the primary issue in all appeals was the challenge against the penalties levied by the AO.

Issue 2: Assessment of Default by the Assessee
The AO initiated penalty proceedings under section 271F after noting that the assessee had filed returns under section 139(4) of the Act instead of section 139(1), constituting a default. The AR representing the assessee argued against the penalty imposition, citing judgments of the Hon'ble Supreme Court. However, the AO proceeded to levy the penalty within the stipulated time under the Act.

Issue 3: CIT(A) Decision and Tribunal's Intervention
The CIT(A) upheld the penalty order, considering the assessee a habitual defaulter for multiple assessment years. Subsequently, the Tribunal intervened, remanding the matter back to the CIT(A) for fresh adjudication. However, the CIT(A) reaffirmed the penalty, leading to the assessee's appeal before the Tribunal.

Issue 4: Tribunal's Final Decision
After considering arguments from both sides, the Tribunal upheld the penalties, emphasizing the assessee's failure to file returns within due dates despite having taxable income exceeding the limit. The Tribunal rejected claims of the AO's order exceeding time limits, lack of reasonable cause for delays, and the AR's arguments for relief under section 273B of the Act. The Tribunal supported the CIT(A)'s decision, dismissing the appeals and affirming the penalties under section 271F.

Conclusion
The Tribunal's detailed analysis affirmed the penalties imposed under section 271F, highlighting the assessee's repeated defaults and failure to provide reasonable cause for the delays in filing income tax returns. The decision underscored the importance of adhering to statutory obligations and upheld the penalties based on the assessee's habitual non-compliance with filing requirements.