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TMI Blog2011 (9) TMI 445X X X X Extracts X X X X X X X X Extracts X X X X ..... ls)-XXV, New Delhi dated 22.02.2011 for the six assessment years, i.e., 1999-00 to 2004-05. In all the assessment years, the only issue involved is confirming the penalty levied u/s 271F of Income-tax Act of Rs.5,000/- each. 2. The grounds of appeal are common in all these appeals, which read as under:- "1. On the facts and in the circumstances of the case, the authorities below were incorrect and unjustified in levying and sustaining the penalty u/s 271F incorrectly and wrongly levied and now wrongly confirmed. 2. On the facts and in the circumstances of the case and in law, the order passed u/s 271F is illegal invalid and void ab initio. 3. On the facts and in the circumstances of the case and in law, the order passed u/s 271F i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... proceedings were initiated u/s 271F of the Income-tax Act. 4. The CIT(A) has confirmed the penalty by holding that during the assessment proceedings before the AO, the partner of the assessee has filed an affidavit dated 26.12.2008 by deposing that all the regular returns were filed but evidence in this regard was not submitted before the AO. The CIT (A) confirmed the penalty u/s 271F as the assessee has not complied with the notices u/s 153A/153C and also did not comply with the penalty notices u/s 271F issued by the AO. Assessee did not submit any explanation in respect of the penalty notices. CIT (A) treated the assessee's action as non-complying and non-cooperative in the assessment and penalty proceedings. He confirmed the penalties ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... by the proviso to sub-section (1) of section 139, fails to furnish such return on or before the due date, he shall be liable to pay, by way of penalty, a sum of five thousand rupees." Thus, as per these provisions, a person who is required to file a return of income, as required sub-section (1) of section 139, fails to furnish such return before the end of the relevant assessment year, he shall be liable to pay, by way of penalty, a sum of five thousand rupees. The penalty can also be levied when a person is required to furnish a return of income as required by the proviso to sub-section (1) of section 139. Prior to 1.4.2006, the firms were not required to be filed return u/s 139(1) if its total income or the total income of any other per ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... uired by sub-section (1) of section 139 or by such notice, as the case may be, or." For inserting the penalty provisions u/s 271F, the intention of the legislature was only to levy the penalty u/s 271F, only when a person is required to furnish a return of his income, as required under sub-section (1) of section 139 or by the proviso to that sub-section and fails to furnish the return upto the end of the relevant assessment year. Assessee is not falling under that as no time limit is fixed to file the return u/s 153A. He also pleaded that as held by the various courts, the penalty provisions must be construed strictly. For this proposition, he relied on the following decisions :- (i) CIT v. T.V. Sundaram Iyengar Sons (P) Ltd., [1975 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f income within a period as specified in the notice. The assessee was under the obligation to file the return of income in respect of each assessment year falling within six assessment years in a prescribed form and verified in a prescribed manner along with other particulars as may be prescribed and the provisions of Income-tax Act shall, as far as may be, apply, accordingly as if such return was a return required to be furnished u/s 139. In view of these, we are not in agreement with the pleadings of the learned AR that the provisions of section 271F cannot be applied where the return is required to be furnished u/s 153C read with section 153A of the Income-tax Act. Although there is no minimum time required to be give in the notice to be ..... X X X X Extracts X X X X X X X X Extracts X X X X
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