ITR filing after due date

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This query is : Resolved

Vijay Kumar (Querist)

06 September 2010 hi,
I am thinking to file ITR for individual having income fom business with NO TAX LIABILITY for AY 2009-10 and AY 2010-11.
1)Will i have to pay any penalty or interest for filing retun after due date even though i dont have any tax liability?
2)Can I file return for even earlier years? I did not had any tax liability even at that time
Pls reply at earliest

Aditya Maheshwari

Aditya Maheshwari (Expert)

06 September 2010 1. for 2009 - 10 penalty upto Rs. 5000 may be levied by the A. O. even if no tax liability.

2. Only last two years return filing possible.

mohinder kansal

mohinder kansal (Expert)

06 September 2010 271F. If a person who is required to furnish a return of his income, as required under sub-section (1) of section 139 or by the provisos to that sub-section, fails to furnish such return before the end of the relevant assessment year, the Assessing Officer may direct that such person shall pay, by way of penalty, a sum of five thousand rupees.

In my view if income is below taxable limit before making any deduction u/s 80C, penaly can not be imposed

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Aditya Maheshwari

Aditya Maheshwari (Expert)

07 September 2010 Dear Kansal
Do u have any case law in support of the above as in one of my clients there was a refund but still penalty under that section was imposed as the A. O. stated in the order "the assessee fails to furnish such return before the end of the relevant assessment year and hence penalty levied."

mohinder kansal

mohinder kansal (Expert)

07 September 2010 I didn't find any case on the subject. law speaks itself that in this case penalty is not imposable. I have discussed the matter with many experts who are also of the same opinion. In some of my cases containing these facts, i replied giving reference to secion 271F r.w section 139, AO did not impose penalty. the appeal can be contested on merit.

Aditya Maheshwari

Aditya Maheshwari (Expert)

07 September 2010 Till the penalty order issued by the A. O. in case of my cleint i also never thought that penalty in such a case could be levied as i always thought that there is no loss of revenue to the department in case of this late filing as TDS had already been deducted. But penalty was levied and the client did not want to pursue the matter further as the amount was Rs. 5000/- only and the cost of litigation would have been more and hence closed the case.

Its really strange how the IT department works. It really defies logic.