THE PARIYARAM SERVICE CO-OP BANK LTD,TRICHUR vs. THE ACIT, THRISSUR

Per CHANDRA POOJARI, ACCOUNTANT MEMBER:

This appeal filed by the assessee is directed against the order of the CIT(A)-I,

Kochi dated 26.02.2019 arising out of the order passed u/s. 272A(2)(c) r.w.s. 274 of

the Act and pertain to the assessment year 2011-12.

adjournment application dated 22/07/2019. Since it is a covered matter, we proceed

to decide the appeal ex parte after hearing the Ld. DR.

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Act for non-compliance of notice u/s. 133(6) by the Income Tax Officer

(Intelligence), Thrissur.

operative Society. The Income Tax Officer(Intelligence), Thrissur issued notice

u/s. 133(6) of the I.T. Act vide letter dated 06/09/2013 to the Secretary of the

assessee-Society wherein following information was sought for:-

Sl. Information Required No. 1 Details of depositors of cash exceeding Rs. 5 Lakhs during the F.Y. 2010-11, 2011-12 & 2012-13. (Information regarding cash deposits in SB account where the aggregate of cash deposits is Rs. 5 Lakhs or above for the concerned years. While furnishing the information, all the cash transaction in the account are to be reflected date wise and not merely the aggregate amount. 2. Details of the payment of interest exceeding Rs.10,000/- made to the depositors including interest on Fixed deposits.

4.1 The above information was not furnished to the Department. Therefore, the

Joint Director of Income Tax (I&CI), Kochi initiated penalty proceedings u/s.

272A(2)(c) of the Act. The assessee did not appear in the penalty proceedings

and did not furnish the required information. It was stated that the assessee had

sought time for producing the details called for in the notice issued u/s. 133(6)

of the I.T. Act. Further, it was stated that the penalty order is barred by

limitation. Hence, it was submitted that there was reasonable cause as mandated

u/s. 273B of the Act for not imposing penalty u/s. 272A(2)(c) of the Act.

However, the Joint Director of Income Tax(Intelligence), Kochi rejected the

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contentions of the assessee and imposed penalty of Rs.56,300/- u/s. 274 r.w.s.

272A(2)(c) of the I.T. Act for non furnishing of information u/s. 133(6) for the

assessment year 2011-12.

assessee carried the matter in appeal before the CIT(A). The CIT(A) dismissed

the appeal of the assessee by placing reliance on the judgment of the Apex

Court in the case of Kathiroor Service Co-operative Bank Ltd. and others vs.

Commissioner of Income Tax and others (2013) (360 ITR 243) wherein it was

held that the ITO(Intelligence) has the authority under the Income Tax Act to

issue notice u/s. 133(6) of the Act.

that in the above case, the Assessing Officer has passed penalty orders without

hearing the assessee. Therefore, in the interest of justice and equity, as a last

chance, we are of the view that the assessee should be given one more

opportunity of hearing in the above case. For the limited purpose of hearing the

assessee and to comply with the principle of natural justice, we restore the

appeal to the file of the Assessing Officer. The assessee shall co-operate with

the Department and shall submit before the Assessing Officer that there is

reasonable cause as mandated u/s. 273B for non-levy of penalty u/s. 272A(2)(c)

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of the I.T. Act. Thus, the grounds of appeal of the assessee are allowed for

statistical purposes.

statistical purposes..

Order pronounced in the open court on the 24th July, 2019.

sd/- sd/- (GEORGE GEORGE K.) (CHANDRA POOJARI) JUDICIAL MEMBER ACCOUNTANT MEMBER

Place: Kochi Dated: 24th July, 2019 GJ Copy to: 1. M/s. M/s. Pariyaram Service Co-operative Bank Ltd., Pariyaram, Chalakudy Post, Thrissur-680 721. The Income-tax Officer (I&CI), Thrissur. 3. The Commissioner of Income-tax(Appeals)-I, Kochi 4. The Pr. Commissioner of Income-tax, Thrissur. 5. D.R., I.T.A.T., Cochin Bench, Cochin. 6. Guard File. By Order

(ASSISTANT REGISTRAR) I.T.A.T., Cochin