2024 (1) TMI 694 - AT - Income Tax

Penalty u/s 271F - assessee has filed return of income in response to the notice u/s 148 and not f iled original return of income u/s. 139(1) - HELD THAT - It is pertinent to note that the assessee failed to furnish return of income as required under sub-section (1) of Section 139 of the Act; but the penalty was initiated after passing of assessment order u/s. 147 of the Act. AO has initiated the penalty u/s. 271F of the Act after the completion of assessment order u/s 147 of the Act. Though there is no time limit prescribed under the Act, it has to be within the stipulated or reasonable time that the penalty should have been initiated. No doubt, the assessee has failed to furnish the return of income u/s 139(1) of the Act, but when the assessee received the notice u/s 148 of the Act, the assessee duly filed the return of income. But the assessee has not given any reason as to why he has not filed original return of income u/s. 139(1) of the Act on or before 31.03.2016. Therefore, the assessee is liable to pay the penalty u/s. 271F of the Act. The appeal of the assessee is dismissed.

Summary

Issues:
The judgment involves the confirmation of penalty imposed under Section 271F of the Income Tax Act, 1961 for the Assessment Year 2015-16, based on the failure of the assessee to file the return of income on time.

Details of the Judgment:

Issue 1: Levy of Penalty under Section 271F
The assessee's appeal contested the penalty imposed under Section 271F, amounting to Rs. 5,000, for not filing the original return on time. The argument was that penalty proceedings were initiated after the return was filed in response to a notice under Section 148, and thus, the penalty was unjustified.

The Assessing Officer initiated penalty proceedings under Section 271F after finalizing the assessment order under Section 147. While the assessee did file the return in response to a notice under Section 148, there was no explanation provided for not filing the original return by the due date of 31.03.2016. The Tribunal upheld the penalty, emphasizing that the failure to file the return on time made the assessee liable for the penalty under Section 271F.

Conclusion:
The Tribunal dismissed the appeal of the assessee, affirming the penalty imposed under Section 271F for the failure to file the return of income on time.