Belated Return

09 June 2009

Can i File ITR for the Assessment Year “2007-2008” and “2008-2009 without the fear of Penalty of Rs.5000/- as per Section 234A of Income Tax Act.

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8 Replies

BALU.... (CCI STUDENT....) (44629 Points)
Replied 10 June 2009

YOU CAN FILE ASSESMENT 2008-09 AND 2009-10 NOW ITS 2 YEARS ONLY..FOR 2007-08 YOU HAVE TO FIND OUT FROM DEPARTMENT MAY BE U SHOULD PAY PENALTY FOR THAT AY...

Radheyshyam Falod (CA) (416 Points)
Replied 10 June 2009

Return for A. Y. 2007 - 08 could have been filed upto 31st March, 2009. The last date for filing belated return has also gone passby. For A. Y. 2008 - 09 you could have filed your return upto 31st March, 2009 without fear of penalty u/s 271F of Rs. 5,000/-. If you file your return and if there is no Self assessment tax payable then the officer may not levy penalty u/s 271F and interest u/s 234A may also not be levied.

Armaan (Student) (181 Points)
Replied 11 June 2009

I do not agree with this.In any case you will have to penalty under section 271F because 271F clearly states that If a person who is required to furnish a return of his income as required under 139(1) or by provisos fails to furnish return before the end of relevant assessment year the assessing officer shall direct that such person shall pay by way of penalty a sum of five thousand rupees.

And this is correct that if you have paid your self assessment tax to fullest applying Dr.prannoy roy judgement Section 234A will not be attracted.

But waiver from 234A shall not save you from thjis penalty as two are different section and the judgemnt applies only for 234A and further objective of 271F was that the assessees who have no outstanding tax evewn should get penalised for late filing of return.

Aditya Maheshwari (CA in Practice) (35857 Points)
Replied 11 June 2009

Above mentioned is that the A. O. may not levy penalty. It is as per his discretion. The A. O. may waive off the penalty.

CA. Megha Topiwala (Job) (1534 Points)
Replied 11 June 2009

It is very clearly stated in law that penalty u/s 271F is attracted only if there is tax liability.... or else no penalty if u dont have any tax liability....

Aditya Maheshwari (CA in Practice) (35857 Points)
Replied 11 June 2009

Armaan has modified the section. It is as under

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.]

So the section itself says it is the discretion of the A. O. The section reads may and not shall

Armaan (Student) (181 Points)
Replied 12 June 2009

yes i agree and i am extremely sorry it is may and not shall.Therefore it is on discretion of A.O

However megha it is nowhere written in any section that if tax liability is zero then 271F is not attracted.If you go thriugh the history one of reason of this section was that in case of salaried employees 234A could not be practically applied as their whole tax is deducted at souuce and for calculation 234A we deduct TDS and then calculate 234A.

Thus for this reason as being one 271F was brought .Futher in bare act even it is not written that in case of no tax 271F not attracted.

Thus 271F penalty can be levied subject to discretion of A.O