THE SECRETARY, MUTHALAKODAM SEVICE CO-OP BANK LTD,IDUKKI vs. THE JT DIT ( I & CI), KOCHI

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ITA 357/COCH/2019Status: DisposedITAT Cochin18 June 2019AY 2014-154 pages
AI SummaryRemanded

What did the Tribunal hold?

The Tribunal found that the Assessing Officer passed penalty orders without hearing the assessees. Therefore, to ensure natural 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, arguing that the orders were ex parte and that they had reasonable cause for non-compliance. They had sought time due to pending High Court litigation and the voluminous nature of documents required.

What were the issues?

Whether penalty under Section 272A(2)(c) was rightly imposed without affording the assessee an opportunity of being heard. Whether there was reasonable cause for non-compliance with the notice.

Which sections of the Income-tax Act were involved?

Section 272A(2)(c),Section 274,Section 133(6),Section 273B

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

Hearing: 18.06.2019Pronounced: 18.06.2019

Heard together (5 matters)

ITA No.355/Coch/2019
ITA No.356/Coch/2019
ITA No.357/Coch/2019
ITA No.358/Coch/2019
ITA No.359/Coch/2019

Read from the judgment's own cause title. This page is filed under one of them.

IN THE INCOME TAX APPELLATE TRIBUNAL COCHIN BENCH, COCHIN

Before Shri Chandra Poojari, AM & Shri George George K, JM

ITA No.355/Coch/2019 : Asst.Year 2014-2015 M/s.The Secretary, The Joint Director of Kumaramangalam Service Vs. Income-tax (I & CI) Co-operative Bank Limited Kochi. C/o.A Kumar, 28/3085-B, Parvathy Nivas, Tagore Nagar Kadavanthara, Kochi – 682 020. PAN : AABAT0174G. (Appellant) (Respondent) ITA No.356/Coch/2019 : Asst.Year 2014-2015 M/s.The Secretary, Idukki- The Joint Director of Kanjikuzhy Service Co- Vs. Income-tax (I & CI) operative Bank Limited Kochi. C/o.A Kumar, 28/3085-B, Parvathy Nivas, Tagore Nagar Kadavanthara Kochi – 682 020. PAN : AACCT1029M. (Appellant) (Respondent) ITA No.357/Coch/2019 : Asst.Year 2014-2015 M/s.The Secretary, The Joint Director of Muthalakodam Service Co- Vs. Income-tax (I & CI) operative Bank Limited Kochi. C/o.A Kumar, 28/3085-B, Parvathy Nivas, Tagore Nagar Kadavanthara Kochi – 682 020. PAN : AAAAM1237C. (Appellant) (Respondent) ITA No.358/Coch/2019 : Asst.Year 2014-2015 M/s.The Secretary, Idukki- The Joint Director of Venmony Service Co- Vs. Income-tax (I & CI) operative Bank Limited Kochi. C/o.A Kumar, 28/3085-B, Parvathy Nivas, Tagore Nagar Kadavanthara Kochi – 682 020. PAN : AAAAI8515M. (Appellant) (Respondent)

ITA No.355/Coch/2019 & Ors. 2 M/s.The Kumaramangalam Service Co-op Bank Ltd & Ors.

ITA No.359/Coch/2019 : Asst.Year 2014-2015 M/s.The Secretary, The Joint Director of Thekkumbhagam Service Co- Vs. Income-tax (I & CI) operative Bank Limited Kochi. C/o.A Kumar, 28/3085-B, Parvathy Nivas, Tagore Nagar Kadavanthara Kochi – 682 020. PAN : AAAAT3266C. (Appellant) (Respondent) Appellants by : Sri.A.Kumar, Advocate Respondent by : Smt.A.S.Bindhu, Sr.DR

Date of Pronouncement : 18.06.2019 Date of Hearing : 18.06.2019

O R D E R 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.

2.

The brief facts of the case are as follow: 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

ITA No.355/Coch/2019 & Ors. 3 M/s.The Kumaramangalam Service Co-op Bank Ltd & Ors. 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.

3.

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 u/s 273B for non-levy of penalty u/s 272A(2)(c) of the I.T.Act. It is ordered accordingly.

4.

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*

ITA No.355/Coch/2019 & Ors. 4 M/s.The Kumaramangalam Service Co-op Bank Ltd & Ors.

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

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