GOGHAT THANA LARGE SIZED PRIMARY COOPERATIVE AGRICULTURAL MARKETING SOCIETY LTD.,HOOGHLY vs. ACIT, CIR-1, HOOGHLY, HOOGHLY

PDF · subscribers
ITA 766/KOL/2017Status: DisposedITAT Kolkata27 June 2018AY 2011-123 pages

In favour of the assessee: the assessee's appeal was allowed. From the AI summary of this appeal.

AI SummaryAllowed

What did the Tribunal hold?

The Tribunal held that the assessee had its books audited as per Section 44AB but did not furnish them by the due date. However, relying on a CBDT circular, the Tribunal considered the default to be without reasonable cause, as the assessee was permitted to retain the audited books for production during assessment.

What were the facts?

The assessee, a co-operative society, filed its return of income electronically with 'nil' income, but with gross receipts of over Rs. 20 crores. The due date for filing the return was September 30, 2011. The Assessing Officer levied a penalty for failure to submit audited books of accounts by the due date.

What were the issues?

Whether a penalty under Section 271B is leviable for not furnishing the audited books of accounts by the due date of filing the return, when the audit was completed and the report was retained by the assessee.

Which sections of the Income-tax Act were involved?

Section 271B,Section 44AB,Section 139(1)

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, BENCH ‘D’ KOLKATA

Before: Hon’ble Shri S.S.Godara, JM & Shri M.Balaganesh, AM ]

ORDER PER S.S.GODARA, JM This Assessee’s appeal for A.Y.2011-12 falls into question the CIT(A)-6, Kolkata’s order dated 12.01.2017 passed in Appeal No.299/CIT(A)-6/Kol/2014-15 upholding the Assessing Officer’s action imposing penalty of Rs.1,00,000/- vide order dated 15.07.2014 involving proceedings u/s 271B of the Income Tax Act, 1961 (in short the ‘ Act ‘ ). Heard both the parties who reiterated their respective stands against and in support of the impugned penalty. Case file perused.

2.

We advert to the relevant facts first of all. This assessee is a Co-operative Society. It filed its return of income on 30.03.2012 electronically disclosing ‘ nil ‘ income. Its gross receipts read a figure of Rs.20,42,57,002/-. There is no dispute about the due date of filing of the above return to be 30. 09.2011 u/s 139(1) of the Act. The Assessing Officer levied penalty in question after concluding that the above facts indicate the instant tax payer’s failure in submitting its audited books of accounts on or before the stipulated date i.e. 30.09.2011 as upheld in the course of lower appellate proceedings.

Goghat Thana Large Sized Primary Co-op.Agricultural Marketing Society Ltd. A.Y.2011-12 2

3.

Learned Departmental Representative fails to dispute the fact that the CBDT Circular No.5/2007 dated 26.07.2007 clarified that a tax payer’s audit report u/s 44AB of the Act was not to be attached with the return. The Board further stipulated that the assessee concerned would get its books audited before the due date of furnishing of the return and fill up the relevant column on the basis of such report and that the report ought to be retained with the tax payer himself to be furnished later on in original during assessment proceedings. All these facts sufficiently show that although the assessee had got his books audited as per section 44AB of the Act, it did not furnish the same on or before the due date stipulated on 30.09.2011 as it had filed its return much later. The Board’s above stated beneficial circular; in our considered opinion, is duly attracted in the facts of the instant case as it was made explicitly clear therein that the assessee had to retain the books of accounts to be produced during the course of assessments. We therefore treat this default in question to be not without reasonable cause as per the above beneficial circular. We delete the impugned penalty in these peculiar facts and circumstances. 3. This assessee’s appeal is allowed. Order pronounced in the Court on 27.06.2018. Sd/- Sd/- [M.Balaganesh] [ S.S.Godara ] Accountant Member Judicial Member Dated : 27.06.2018. [RG Sr.PS] Copy of the order forwarded to: 1.Goghat Thana Large Sized Primary Co-operative Agricultural Marketing Society Ltd., At Vikdas, P.O. 7 P.S. Goghat, Dist. Hooghly, Pin 712614. 2. I.T.O., Ward-24 (4), Hooghly.. 3. C.I.T.(A)- 6, Kolkata 4. C.I.T-1, Kolkata 5. CIT(DR), Kolkata Benches, Kolkata. True Copy By order,

Senior Private Secretary Head of Office/D.D.O, ITAT Kolkata Benches Goghat Thana Large Sized Primary Co-op.Agricultural Marketing Society Ltd. A.Y.2011-12 3

More judgments on Section 271B

All 1,993 judgments and leading authorities on Section 271B →

Recent GST High Court judgments

Search GST case law →