UDALA REGIONAL COOPERATIVE MARKETING SOCITY LIMITED,MAYURBHYANJ vs. ITO,WARD-BBN-W-(9)(91), BHUBANESWAR

आयकर अऩीऱीय अधधकरण, कटक न्यायऩीठ,कटक IN THE INCOME TAX APPELLATE TRIBUNAL CUTTACK BENCH CUTTACK (THROUGH VIRTUAL HEARING) BEFORE SHRI GEORGE MATHAN, JUDICIAL MEMBER AND SHRI GIRISH AGRAWAL, ACCOUNTANT MEMBER आयकर अऩीऱ सं/ITA No.280/CTK/2023 (ननधाारण वषा / Assessment Year : 2017-2018) Udala Regional Cooperative Vs ITO, Ward-BBN-W-(9)(91), Marketing Society Limited, Bhubaneswar S.O. Udala, Mayurbhanj PAN No. :AAAAU 5101 B (अऩीऱाथी /Appellant) (प्रत्यथी / Respondent) .. ननधााररती की ओर से /Assessee by : Shri Mohit Sheth, Advocate राजस्व की ओर से /Revenue by : Shri Charan Dass, Sr. DR सुनवाई की तारीख / Date of Hearing : 28/11/2023 घोषणा की तारीख/Date of Pronouncement : 28/11/2023 आदेश / O R D E R Per Bench : This is an appeal filed by the assessee against the order of the ld. CIT(A), National Faceless Appeal Centre (NFAC), Delhi, dated 05.06.2023, passed in ITBA/NFAC/S/250/2023-24/1053558701(1), for the assessment year 2017-2018, thereby confirming the levy of penalty u/s.271F of the Act. 2. It was submitted by the ld. AR that the assessee is a Semi Govt. Organization (AOP), whose accounts are audited by CAG. It was the submission that as the CAG could not complete the audit of the books of accounts of the assessee in time, the assessee could not file its return of income in the prescribed time limit. It was the submission that the AO levied penalty u/s.271F of the Act on the failure of the assessee to file its return of income u/s.139(1) of the Act. It was the submission that as the

2 ITA No.280/CTK/2023 accounts of the assessee have not been audited, the return filed by the assessee itself would have been an invalid return. It was the submission that the audit was not yet completed and the assessee is yet to file its return and the assessment had also been completed. The audit report has been sent to CAG for signature as early as in 2020 but till date it has not been received by the assessee and the return has not been filed till date. It was the submission that on account of reasonable cause, the penalty as levied by the AO and as confirmed by the ld.CIT(A) may be deleted. 3. In reply, ld. DR vehemently supported the order of the AO and ld. CIT(A). 4. We have considered the rival submissions. A perusal of the facts of the present case clearly shows that non-filing of the return u/s.139(1) of the Act was on account of non-completion of audit of the books of accounts by the CAG. The assessee has no control over the CAG and admittedly the delay is attributable to an auditor appointed by the CAG. This admittedly is a reasonable cause. This being so, the reasonable cause given by the assessee is accepted and the penalty as levied by the AO and confirmed by the ld. CIT(A) is hereby deleted. 5. In the result, appeal of the assessee is allowed. Order dictated and pronounced in the open court on 28/11/2023. Sd/- Sd/- (GIRISH AGRAWAL) (GEORGE MATHAN) ऱेखा सदस्य/ ACCOUNTANT MEMBER न्यानयक सदस्य / JUDICIAL MEMBER कटक Cuttack; ददनाांक Dated 28/11/2023 Prakash Kumar Mishra, Sr.P.S.

3 ITA No.280/CTK/2023 आदेश की प्रनतलऱपऩ अग्रेपषत/Copy of the Order forwarded to : अऩीऱाथी / The Appellant- 1. Udala Regional Cooperative Marketing Society Limited, S.O. Udala, Mayurbhanj प्रत्यथी / The Respondent- 2. ITO, Ward-BBN-W-(9)(91), Bhubaneswar आयकर आयुक्त(अऩीऱ) / The CIT(A), 3. आयकर आयुक्त / CIT 4. ववभागीय प्रतततनधध, आयकर अऩीऱीय अधधकरण, कटक / DR, 5. ITAT, Cuttack गार्ड पाईऱ / Guard file. 6. आदेशानुसार/ BY ORDER, सत्यावऩत प्रतत //True Copy//

(Assistant Registrar) आयकर अऩीऱीय अधधकरण, कटक/ITAT, Cuttack