Failure to File SFT within Stipulated Date Given in Notice u/s 285 BA of Income Tax Act: ITAT Confirms Penalty u/s 271FA

The Ahmedabad bench of the Income Tax Appellate Tribunal upheld the penalty under Section 271FA for the Waghodia Urban Co-op. Bank Limited's failure to file the Statement of Financial Transactions (SFT) within the stipulated date given in the notice under Section 285BA of the Income Tax Act. \r

Despite server issues, the bank filed SFT-005 belatedly, prompting a penalty of Rs. 7,40,000. The bank argued technical difficulties as the cause, which the tribunal found unsubstantiated. \r

Noting the mandatory nature of the filing requirement and the ample opportunity given, the tribunal dismissed the appeal, affirming the penalty imposition by the Assessing Officer under Section 285BA(5) of the Income Tax Act.