DISTRICT COOPERATIVE BANK LTD.,RAEBARELY UTTAR PRADESH vs. ADDL/JDIT(I&CI), LUCKNOW

The facts of the case, in brief, are that the assessee is a Co-operative Bank and was required to file Statement of Financial Transaction (“SFT” for short) for the Financial Year 2020-21 by the due date of 30/06/2021. However, the assessee failed to file the SFT by the due date. Accordingly, notice u/s 285BA(5) of the Act dated 25/08/2021 was issued to the assessee for filling SFT for FY 2020-21 on or before 24/09/2021. However the assessee failed to file SFT for the FY 2020-21 before 24/09/2021. Subsequently, the Assessing Officer issued further notices dated 05/03/2022 & 14/06/2022 to show cause as to why penalty u/s 271FA of the Act should not be imposed on the assessee for failure to file SFT. In response to the notice issued by the Assessing Officer, the assessee filed SFT beyond the due date. Therefore, the Assessing Officer imposed penalty of Rs.4,11,000/- under section 271FA of the Act. Being aggrieved, the assessee carried the matter in appeal before the learned CIT(A). Vide impugned appellate order dated 21/10/2024, the learned CIT(A) dismissed the appeal of the assessee. Now the assessee is in appeal before the Income Tax Appellate Tribunal.

We have heard the rival parties and have gone through the material placed on record. During the course of hearing, learned Counsel for the assessee submitted that the due date of filing of SFT was 30/05/2021 whereas it was filed by the assessee on 07/07/2022. He further submitted that the entire period of 15/03/2020 to 28/02/2022 was covered by the notification of Hon'ble Supreme Court. The Hon'ble Supreme Court took suo motu cognizance of COVID-19 pandemic and extended the due dates of all the judicial and quasi judicial compliances. Learned Counsel for the assessee also submitted that the date was further extended from 01/03/2022 to 31/05/2022 through the dictates of Hon'ble Supreme Court which reads as under: