THE SECRETARY, KUDAYATHOOR SERVICE CO-OP BANK LTD,IDUKKI vs. THE JT DIT ( I & CI), KOCHI
What did the Tribunal hold?
The Tribunal found that the penalty orders were passed without hearing the assessees. Therefore, in the interest of justice, the cases were restored to the Assessing Officer for a fresh hearing.
What were the facts?
The assessees challenged penalty orders under Section 272A(2)(c) of the Income-tax Act. They argued that the penalty orders were ex parte and that they had reasonable cause for non-compliance with notices.
What were the issues?
Whether the penalty orders were validly passed without affording the assessees an opportunity of being heard and if reasonable cause existed for non-compliance with notices.
Which sections of the Income-tax Act were involved?
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, COCHIN BENCH, COCHIN
Before: Shri Chandra Poojari, AM & Shri George George K, JM
Heard together (30 matters)
Read from the judgment's own cause title. This page is filed under one of them.
Per Bench :
These appeals at the instance of the assessee are directed against separate order of the CIT(A). The orders of the CIT(A) arise out of the order passed u/s 272A(2)(c) r.w.s. 274 of the Income-tax Act, 1961.
The brief facts of the case are as follow:
ITA No.313/Coch/2019 & Ors. 9 M/s.The Peringode Service Co-op Bank Ltd & Ors. The assessees in the above cases have challenged the imposition of penalty u/s 272A(2)(c) of the I.T.Act. At the very outset we notice that the assessees had raised a ground in all the above appeals that the orders levying penalty are ex parte orders and hence bad in law. When the assessee received notice u/s 274 of the I.T.Act show causing for why penalty should not be imposed, the assessee had sought time stating that the provisions of issuance of notice u/s 133(6) of the I.T.Act was challenged before the Hon’ble High Court and requested the Assessing Officer to await the outcome of the Hon’ble High Court’s judgment. Further, 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 stating that the documents called for are voluminous. Hence it contended that there was reasonable cause as mandated u/s 273B of the I.T.Act for not imposing penalty u/s 272A(2)(c) of the I.T.Act.
We have heard the rival submissions and perused the material on record. We find that in all the above cases, the Assessing Officer’s have passed penalty orders without hearing the assessees. Therefore, in the interest of justice and equity, as a last chance, we are of the view that the assessees should be given one more opportunity of hearing in the above cases. For the limited purpose of hearing the assessee and to comply with the principle of natural justice, we restore the above cases to the Assessing Officer. The assessees shall co- operative with the Department and shall submit before the Assessing Officer that there is reasonable cause as mandated
ITA No.313/Coch/2019 & Ors. 10 M/s.The Peringode Service Co-op Bank Ltd & Ors. u/s 273B for non-levy of penalty u/s 272A(2)(c) of the I.T.Act. It is ordered accordingly.
In the result, the appeals filed by the assessees are allowed for statistical purposes.
Order pronounced on this 18th day of June, 2019.
Sd/- Sd/- (Chandra Poojari) (George George K.) ACCOUNTANT MEMBER JUDICIAL MEMBER
Cochin ; Dated : 18th June, 2019. Devdas*
Copy of the Order forwarded to : 1. The Appellants. 2. The Respondent. 3. The CIT, Kochi. 4. CIT(A)-I, Kochi. 5. DR, ITAT, Cochin 6. Guard file. BY ORDER,
(Asstt. Registrar) ITAT, Cochin
More judgments on Section 272A(2)(c)
- Sunil Shantilal Mehta, Mumbai vs Deputy Commissioner of Income Tax - Central…ITA 4576/MUM/2026[2002-03]Status: Disposed22 Sept 2026AY 2002-03
- Kmp Expressways Limited, New Delhi vs JCIT, TDS-Range-75, DelhiITA 4224/DEL/2026[2012-13]Status: Disposed30 Jul 2026AY 2012-13
- Vikas Agarwal, Bulandshahr vs ACIT, Central Circle, MeerutITA 6486/DEL/2025[2017-18]Status: Disposed11 Feb 2026AY 2017-18
- Dy. C.I.T. Cir-.2, Nagpur vs Shri Govinddas Goverdhan Daga, NagpurITA 517/NAG/2016[2012-13]Status: Disposed5 Feb 2025AY 2012-13
- Sub Registrar, Tamkuhiraj, Kushinagar vs Additional Commissioner of Income Tax…ITA 347/LKW/2019[2013-14]Status: Fixed5 Dec 2024AY 2013-14
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