KANIPPAYYUR SERVICE CO-OPERATIVE BANK LTD,THRISSUR vs. INCOME TAX OFFICER, WARD-1 & TPS, GURUVAYOOR, GURUVAYOOR, THRISSUR

ITA 590/COCH/2025Status: DisposedITAT Cochin29 October 2025AY 2017-2018Bench: SHRI INTURI RAMA RAO (Accountant Member), SHRI ANIKESH BANERJEE (Judicial Member)1 pages
AI SummaryAllowed

What did the Tribunal hold?

The Tribunal held that the delay in obtaining audit reports from statutory auditors under the Kerala Co-operative Societies Act and Rules constituted a reasonable cause for delayed submission. Following the decision of the Hon'ble Kerala High Court in Chavakkad Service Co-Operative Bank Ltd. v. ITO, the penalty levied under section 271B was deemed unsustainable.

What were the facts?

The assessee, a cooperative bank, filed its return claiming deduction under section 80P. The case was selected for scrutiny, and during the assessment under section 143(3), it was found that the assessee did not file the tax audit report under section 44AB. A penalty under section 271B was imposed for non-filing of the tax audit report, which was upheld by the CIT(A).

What were the issues?

Whether a penalty under section 271B is leviable for delayed filing of a tax audit report when there is a reasonable cause for the delay, citing a High Court precedent.

Which sections of the Income-tax Act were involved?

Section 250,Section 271B,Section 139(1),Section 80P,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 Respondent: Smt. Leena Lal, Sr. D.R
Hearing: 27.10.2025Pronounced: 29.10.2025

Per: Anikesh Banerjee, JM The instant appeal of 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 13/06/2025. The impugned order emanated from the order of the National Faceless Assessment Centre, Delhi (in short, ‘Ld.AO’) passed under section 271B of the Act, date of order 17/01/2022. 2 Kanippayyur Service Co-op. Bank Ltd.

2.

The assessee is a cooperative bank and filed the return U/s 139(1) of the Act. The assessee claimed deduction under section 80P of the Act in its return. The assessee’s case was selected for scrutiny and the assessment was

The order continues below.

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