Shankar Math vs Income Tax Officer(E)

Per Satbeer Singh Godara, Judicial Member:

This assessee’s appeal for Assessment Year 2011-12, arises against the C IT(A)/NFAC, De lhi’ s DIN & order No. ITBA/NFAC/S/250/2025-26/1076066894(1) dated 07.05.2025, in proceedings u/ s 272A(2)(e) of the Income Tax Act, 1961.

Heard both the p arties at length. Case file perused.

We note at the outset that the assessee/appellant’s sole substantive gro und raised during the course of hearing challenges both the learned lower authorities’ action imposing section 272A(2)(e) penalty o f Rs.2,42,300/- computed @ Rs. 100 per day for default of 2423 days in furnishing return; in the Assessing Officer’s order dated 21.03 .2022 as upheld in the lower appellate discussion.

Learned CIT-DR vehemently argues that the asse ssee all alo ng has failed to plead and prove any justifiable reason explaining non-filing of his re turn for an extraordinary period of 2423 days. H e could hardly dispute this assessee is a trust wherein possib ility of communication gaps between management and aud itor could not be altogether ruled o ut and; that too, in an instance wherein there w as Covid- 19 pandemic outbreak during the initiation of penalty procee dings by the learned Assessing Officer . We accordingly are of the considered view that the assessee has indeed made out a reasonable cause within the meaning of se ction 274 of the Act for having not furnished it’ s return in the above time per iod to delete the impugned penalty levied by both the learned lower authorities.

This assessee’s appeal is allowed.