KANAKA MAHALAKSHMI CO- OPERATIVE BANK LIMITED,VISAKHAPATNAM vs. DIRECTOR OF INCOME TAX (INTELLIGENCE & CRIMINAL INVESTIGATION), HYDERABAD

IN THE INCOME TAX APPELLATE TRIBUNAL VISAKHAPATNAM BENCH, VISAKHAPATNAM BEFORE SHRI V. DURGA RAO, HON’BLE JUDICIAL MEMBER & SHRI D.S. SUNDER SINGH, HON’BLE ACCOUNTANT MEMBER ITA Nos. 385 to 389/VIZ/2017 (Asst. Years: 2011-12 to 2015-16) Chief Executive Officer, vs. Director of Income Tax The Kanaka Mahalakshmi (Intelligence & Criminal Co-operative Bank Ltd., Investigation), Aayakar 49-34-22, Akkayyapalem, Bhavan, Basheerbagh, Visakhapatnam. Hyderabad. PAN No. AACFT 6489 J (Appellant) (Respondent)

Assessee by : Shri S. Rama Rao – Advocate. Department By : Shri K.C. Das –Sr.DR Date of hearing : 03/08/2018. Date of pronouncement : 21/08/2018. O R D E R PER Bench:

These appeals by the assessee are directed against the separate orders of Director of Income Tax (Intelligence & Criminal Investigation), Hyderabad, all dated 21/04/2017 for the Assessment Years 2011-12 to 2015-16, whereby penalty order under section 271FA has been passed. 2. When these appeals are taken up for hearing, Bench has asked why these appeals are not filed before the ld. CIT(A) with

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reference to section 246(1)(q) of the Act. Ld. counsel for the assessee has submitted that penalty order passed by the Director of Income Tax (I & CI), Hyderabad and the ld. CIT(A) are hold the same rank in the Department, therefore, the appeals are filed directly and further submitted that he may be permitted to withdraw the appeals with a liberty to file the same before the ld.CIT(A). 3. On the other hand, ld. Departmental Representative has not raised by objection. 4. We have heard both the sides and perused the material available on record. 5. We find that the Hon'ble Rajasthan High Court in the case of Director of Income Tax (CIB) vs. Ravi Vijay [(2015) 25 taxmann.com 176 (Raj.)] has held that an appeal against order of penalty passed under section 271FA by Director, Income Tax, who holds rank of Commissioner is maintainable before the Commissioner (Appeals) with reference to section 246(1)(q) of the Act. The Coordinate bench of the Hyderabad Tribunal in the case of Citizen Cooperative Society Ltd. vs. Director of Income Tax (I & CI), Hyderabad, dated 10/11/2017 in ITA No. 687/Hyd/2017 has held that the appeal filed by the assessee directly before the Tribunal is not maintainable. As per section 246(1)(q), against

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penalty order passed under section 271FA of the Act, appeal is maintainable before the ld. CIT(A), therefore, we permit the assessee to withdraw these appeals and it is open to the assessee to file the appeals before the ld. CIT(A). However, we observe that once appeals are filed before the ld. CIT(A), the ld. CIT(A) is directed to condone the delay, if any. Ordered accordingly. 6. In the result, appeals filed by the assessee are dismissed as withdrawn with the aforesaid liberty. Order Pronounced in open Court on this 21st day of August, 2018.

Sd/- sd/- (D.S. SUNDER SINGH) (V. DURGA RAO) Accountant Member Judicial Member Dated : 21st August, 2018. vr/- Copy to: 1. The Assessee–Chief Executive Officer, The Kanaka Mahalakshmi Co-operative Bank Ltd., 49-34-22, Akkayyapalem, Visakhapatnam. 2. The Revenue – Director of Income Tax (Intelligence & Criminal Investigation), Aayakar Bhavan, Basheerbagh, Hyderabad. 3. The Director of Income Tax (Intelligence & Criminal Investigation), 2 nd Floor, Aayakar Bhavan, Basheerbagh, Hyderabad. 4. The D.R., Visakhapatnam. 5. Guard file. By order

(VUKKEM RAMBABU) Sr. Private Secretary, ITAT, Visakhapatnam.