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TMI Blog2022 (10) TMI 822X X X X Extracts X X X X X X X X Extracts X X X X ..... assessee complied with the requirement of Section 285BA of the Act by filing the Annual Information Return SFT-003 on 12-02-2020, SFT-004 on 18-02-2020, SFT-005 on 20-02-2020. However, while doing so, there was delay of 264 days in furnishing the AIR for the period under consideration. Since it was a statutory obligation on the part of the assessee bank to furnish AIR as a specified instruction u/s 285BA, therefore, any argument of the assessee with regard to ignorance of law or adopting casual and cavalier attitude is of no help to the assessee. CIT(A) has passed the well reasoned order by holding that the assessee bank has not given any reasonable cause of statutory non-compliance of filing of SFT within due time. Therefore, we find n ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he penalty of Rs.1,43,000/- 2.1 During the course of hearing, the Bench noted that the assessee has raised two grounds which are interrelated and relates to challenging the order of the ld. CIT(A) in confirming the action of AO in imposing the penalty u/s 271FA of the Income Tax Act, 1961. Therefore, the Bench has decided to dispose off these grounds of appeal through a common order. 2.2 The ld. AR appearing on behalf of the assesee reiterated the same arguments as were raised by him before the ld. CIT(A) and the same are contained in para 4 of the order of the ld. CIT(A) which is reproduced below. 4. A Notice u/s 250 of the IT Act dated 06.09.2021 to be complied by 13.09.2021 to which the assessee has submitted reply on 27.09.20 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s.1,43,000/- for the delay of 264 days in furnishing AIR in respect of AY 2019-20. 2.3 On the contrary, the DR relied on the orders passed by the Revenue authorities. 2.4 After hearing both the parties and perusing the materials available on record, the Bench noted that the assessee falling within the ambit of Section 285BA failed to comply with legal requirement for the period of A.Y. 2018-19. Therefore, a notice was served upon the assessee and after considering the reply from the assesse, penalty u/s 271FA amounting to Rs.1.43 lacs was imposed by the AO for delay of 264 days in furnishing Statement of Financial Transaction (SFT) or such reportable account in sub-section 1 of Section 285BA of the Income Tax Act by the assessee. Ho ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ank which is engaged in borrowing and lending business. It is pertinent to mention that under the provisions of Section 285BA, 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 documents containing a record of any specified financial transaction, under any law for the time being in force, shall furnish an annual information return in respect of such specified financial transaction which is registered or recorded by him during any financial year beginning on or after the 1st day of April, 204 and information relating to which is relevant and required for the purpose of this Act, to the prescribed income tax or authority ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the legal requirements for the period 2018-19. A Notice dated 20-12-2019 was issued by the AO which was received by the assessee on 30-12-2019 and the assessee complied with the requirement of Section 285BA of the Act by filing the Annual Information Return SFT-003 on 12-02-2020, SFT-004 on 18-02-2020, SFT-005 on 20-02-2020. However, while doing so, there was delay of 264 days in furnishing the AIR for the period under consideration. Since it was a statutory obligation on the part of the assessee bank to furnish AIR as a specified instruction u/s 285BA, therefore, any argument of the assessee with regard to ignorance of law or adopting casual and cavalier attitude is of no help to the assessee. Therefore, we find that the ld. CIT(A) has pa ..... X X X X Extracts X X X X X X X X Extracts X X X X
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