KOLLAM DISTRICT POLICE DEPARTMENT EMPLOYEES CO-OPERATIVE SOCIETY,KOLLAM vs. ITO, WARD-2, KOLLAM

ITA 639/COCH/2025Status: DisposedITAT Cochin30 October 2025AY 2017-18Bench: the Ld. CIT(A). But the Ld. CIT(A) upheld the impugned penalty order. Being aggrieved the assessee filed an1 pages
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What did the Tribunal hold?

The Tribunal referred to the Kerala High Court's decision in Chavakkad Service Co-Operative Bank Ltd. v. ITO, which held that if audit reports are made available before the Assessing Authority at the time of assessment finalization and the delay in obtaining them from statutory auditors under the Kerala Co-operative Societies Act and Rules is a reasonable cause, then no penalty under section 271B should be imposed.

What were the facts?

The assessee, a cooperative bank, claimed deduction under section 80P(2)(a). The tax audit report (TAR) was due by 07/11/2017 but was filed on 06/02/2018. The Assessing Officer initiated penalty proceedings under section 271B for non-filing of the TAR within the due date and imposed a penalty of Rs. 1,50,000/-. The CIT(A) upheld the penalty.

What were the issues?

Whether the penalty imposed under Section 271B for delayed filing of the Tax Audit Report is sustainable when the report was submitted before the finalization of assessment and there was a reasonable cause for the delay.

Which sections of the Income-tax Act were involved?

Section 250,Section 271B,Section 139(1),Section 80P(2)(a),Section 143(3),Section 44AB

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Income Tax Appellate Tribunal, COCHIN BENCH

Before: SHRI INTURI RAMA RAO, AM & SHRI ANIKESH BANERJEE, JM

For Appellant: Shri Surendranath Rao, CA
For Respondent: Smt. Leena Lal, Sr. D.R, Smt. Leena Lal, Sr. D.R
Hearing: 29.10.2025Pronounced: 30.10.2025

Per: Anikesh Banerjee, JM The instant appeal of both the assessee was filed against the order of the Learned National Faceless Appeal Centre, Delhi [for brevity, ‘Ld. CIT(A)’] passed under section 250 of the Income-tax Act, 1961 (in short, the Act’) for Assessment Year 2017-18, date of order 10/07/2025 for petitioner-1 & for Assessment year 2013-14, date

The order continues below.

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