Meet Forex Private Limited vs Addl./JDIT(I & CI)

Parties Involved

Facts Summary

The assessee, Meet Forex Private Limited, is a company authorized by the Reserve Bank of India to engage in the sale and purchase of foreign currency. The company was required to file a statement of financial transactions (SFT) for reportable accounts under the Foreign Exchange Management Act, 1999. The due date for filing the SFT for the financial year 2017-18 was 31.05.2018. The assessee failed to file the SFT by the due date, leading to notices being issued under section 285BA(5) of the Income Tax Act. Despite these notices, the assessee did not comply and filed its reply on 30.08.2019 stating that there were no transactions to report. However, the Assessing Officer found that the assessee had actually reported one transaction and levied a penalty of Rs.81,500/-. The assessee appealed against this order to the Commissioner of Income Tax (Appeals), who confirmed the penalty. The assessee then appealed to the Income Tax Appellate Tribunal.…

Legal Issues

• 1. Whether the penalty imposed under section 271FA of the Income Tax Act for the non-filing of SFT is sustainable?

Judgment Outcome

Decided in favour of Assessee.

Precedents Relied Upon

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