`Date 03/06/2021

From:

For Alvin Holidays and Forex Private Limited

Regd. Office: Shop No , J-9 , Qutab Plaza Gurgaon
Ashok Cresent marg , DLF phase-1 sector -26A , Sikanderpur Ghosi
Gurgaon 122002 , Haryana India

To,

Assistance Commissioner of Income Tax,

Circle-4(1),
C.R. Building
New Delhi-110002

Subject: – Reply to notice u/s 274 r.w.s 271 FA of Income Tax Act, 1961.
Ref:

i) PAN: AAOCA9573F A.Y.-2019-20

ii) Notice No: ITBA/PNL/F/17/2021-22/1033257685(1)

Sir,

We refer to your aforesaid letter dated 31/03/2021 , by which your Honor proposed to
levy a penalty for concealment of income under section 271(1)(c) of the Income tax
Act,1961 for which I would like to submit as under:-

We would like to bring to your notice key points emerging from rule 114E.

1. EXTRACT OF INCOME TAX RULE 114E

(A) The statement of financial transaction required to be furnished under sub-section (1)
of section 285BA of the Act shall be furnished in respect of a financial year in Form No.
61A and shall be verified in the manner indicated therein.

(B) The statement referred to in sub-rule (1) shall be furnished by every person mentioned
in column (3) of the Table below in respect of all the transactions of the nature and value
specified in the corresponding entry in column (2) of the said Table in accordance with
the provisions of sub-rule (3), which are registered or recorded by him on or after the 1st
day of April, 2016.

a) Statement in Form 61A not required to be filed by such specified persons in the
absence of any specified Transactions.RULE 114E DO NOT SPECIFICALLY
MANDATE FILING OF NIL STATEMENT.

2. In addition to above I have also gone through following notifications/ Circulars / PPT
Issued by Department related to Specified financial Transactions and not found anything
which suggest mandatory filing of NIL Statement in respect of Specified Financial
Transaction (SFT) in form No. 61A.

• Notification No 13 of 2016 Dated: 30th December, 2016

• Notification No. 95/2015 Dated the 30th December, 2015
• PPT by Directorate of Income Tax (Intelligence and Criminal Investigation),
Mumbai
• Notification No. 19/2016 Dated: 18th March, 2016
• Communication by ROC to Companies to furnish Statement of Financial
Transactions to Income Tax Department
• Notification No. 2/2017 Dated: 6th January, 2017
• Notification No. 104/2016-Income Tax Dated: 15th November, 2016
• Email on Statement of Financial transactions (SFT) filing by IT Dept
• Notification No. 91/2016 Dated 6th October 2016

3. We have also gone through various articles published on the income tax website from
time to time and not found anything in those articles which suggests mandatory filing of
NIL Return in respect of Specified Financial Transaction (SFT) in form No. 61A-

o Statement of Financial Transactions (SFT) and ITDREIN

o FAQs on Statement of Financial Transactions & Reportable Accounts
o Amendment in rules for Quoting of PAN in various transactions (Rules 114B to
114E)
o Communication by ICAI on Mandatory filing of Statement of Financial Transactions
(SFT) on or before 31st May, 2017
 o Statement of Financial transactions – Form 61A filing &Submitting “SFT Preliminary
Response”
• 6 Comprehensive Analysis of New Requirements of furnishing PAN & AIR
Information w.e.f 01-01-2016
o TCS and furnishing of Statement of Financial Transaction [SFT]

4. Further CBDT has released a Press Release on 26/05/2017 which says that The
registration of reporting person (ITDREIN registration) is mandatory only when at least
one of the Transaction Type is reportable in other words Form 61A is required to be
submitted only if there is at least one reportable transaction.

5. CBDT has also clarified on Page No. 5 of Reporting Portal -Frequently Asked Questions
(FAQs)-Version 2.0 (April 2018) that it is not Mandatory to file NIL Statement. However it
is advisable to submit ‘SFT Preliminary Response’.

On the basis of above notifications, directions Nil Statement in form No. 61A is not
mandatory under section 285BA read with rule 114E

Section 271(1)(c) is levied if there is concealment of income or furnishing of inaccurate

particulars of income but In our case we had neither concealed any Income nor shown
any inaccurate particulars in the return.

I ,therefore, pray that your Honor shall accept the conceded income as my true and
correct income and to drop the proposed penalty proceeding initiated u/s 271(1)(c) of the
Income tax Act,1961 as there was no malafide intention to conceal or furnish inaccurate
particulars of income for the assessment year 2019-2020.

Your faithfully

For Alvin Holidays and Forex Private Limited

Authorized Representative