9911796707
TMI Blog2016 (9) TMI 147X X X X Extracts X X X X X X X X Extracts X X X X ..... ommon and facts are identical, we dispose of both these appeals by this common order for the sake of convenience. Since grounds are common and facts are identical, we dispose of both these appeals by taking the facts from AY 2011-12. 2. Brief facts of the case are that Malda District Central Coperative Society is an entity dealing with borrowing and lending business. Under the provisions of Section 285BA of the Act, every person who is an assessee or other categories enumerated there and responsible for registering or responsible for registering, or, maintaining books of account or other document containing a record of any specified financial transaction, under any law for the time being in force, shall furnish an annual information return ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d in the circumstances of the case, the Ld. DIT ought to have considered that there was reasonable cause on the part of the appellant in not filing the Annual Information Return in time." 3. It is the argument of the learned AR that the AO having satisfied with the cause for the delay explained by the assessee extended the time for furnishing the AIR till 18.3.2013 and after the assessee complied with the direction within the extended time, it is not open for the authorities to resort to the penalty proceedings under section 271 FA of the Act. According to him, non-compliance with the requirement of Section 285BA of the Act till the notice, was non-intentional but only due to the fact that the assessee was not aware of the existence of su ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ng to the assessee, the default is not intentional, but due to ignorance of existence of such an obligation, whereas the revenue contends that there cannot be such an ignorance in view of the department conducting so much of awareness campaign and the assessee complying with other obligations under the Act. 6. Learned AR placed reliance on a decision reported in Motilal Padampat Sugal Mills Co. Ltd vs State of UP [118 ITR 326(SC) for the principle that there is no presumption in law that every persons knows the law. He also placed reliance on a decision reported in WTO vs S.P. Jayakumar (1983) 3 ITD 221 (Mad) wherein it was held,- 6. That the tax laws of this country are complex and complicated and often require for compliance, therewith ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eration of all relevant circumstances and even if a minimum penalty is prescribed, the authority competent to impose the penalty will be justified in refusing to impose it when there is a technical or venial breach of the provisions of the Act or where the breach flows from a bonafide belief that the offender is not liable to act in the manner prescribed by the statute..." He further placed reliance on a decision reported in Kaushal Diwan vs Income-Tax Officer 1983 3 ITD 432 Delhi, for the observation that,- It cannot be considered that each assessee, whether small or big, must rush to an income-tax specialist, practising as a lawyer or a chartered accountant, for his income-tax assessment especially when the income earned or being earne ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he Director of Income Tax (Intelligence and Criminal investigation) does not speak as to how the assessee stood to gain by contravening with the provisions of Section 285BA of the Act or the act of assessee resulted in any loss to the Revenue. Further, it is an acknowledged and judicially recognized fact that the tax laws of this country are complex and complicated and often require for compliance, therewith the assistance of tax practitioners specialising in this field, is a well known fact, and it is equally well known fact that the legislation in this field undergoes so frequent changes and amendments that it is not possible for even a person specialising in this field, including the tax administrator, to claim that he knows what exactly ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
