ANANTHAVOOR SERVICE COOPERATIVE BANK LTD,MALAPPURAM vs. INCOME TAX OFFICER, WARD 1 & TPS, TIRUR, MALAPPURAM

ITA 593/COCH/2025Status: DisposedITAT Cochin29 October 2025AY 2017-18Bench: 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 penalty levied under Section 271B is unsustainable in law and on facts. The Tribunal followed the ratio laid down by the Hon'ble Kerala High Court in the case of Chavakkad Service Co-operative Bank Ltd., where it was held that delay in obtaining audit reports from statutory auditors can be a reasonable cause for delayed submission.

What were the facts?

The assessee, a cooperative bank, filed its return of income belatedly. Subsequently, the Assessing Officer (AO) initiated penalty proceedings under Section 271B of the Income Tax Act, 1961, for failure to furnish the Tax Audit Report (TAR) within the due date.

What were the issues?

Whether penalty under section 271B is leviable for delayed filing of Tax Audit Report when the report was available at the time of assessment and there was a reasonable cause for the delay.

Which sections of the Income-tax Act were involved?

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

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Income Tax Appellate Tribunal, COCHIN BENCH

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

For Appellant: Shri Amaljith P.J., CA
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 08/07/2025. The impugned order was emanated from the order of the National Faceless Assessment Centre, Delhi (in short, ‘Ld. AO’) order passed under section 271B of the Act, date of order 10/02/2022. 2 Ananthavoor 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(2)(a) of the Act in its return filed on dated 26/01/2018. The asses

The order continues below.

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