THE COIMBATORE CITY COOPERATIVE BANK LIMITED,COIMBATORE vs. DCIT, NON-CORPORATE CIRCLE -I

आदेश / O R D E R

PER AMITABH SHUKLA, A.M :

This appeal is filed against the order bearing DIN & Order

No.ITBA/NFAC/S/250/2023-24/1058076838(1) dated 20.11.2023 of the

Learned Commissioner of Income Tax [herein after “CIT(A), National

Faceless Appeal Center[NFAC], Delhi, for the assessment year 2017-18.

Through the aforesaid appeal the assessee has challenged order u/s 250

dated 20.11.2023 passed by NFAC, Delhi.

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2.0 During the course of appellate proceedings the Ld.AR argued

that no penalty u/s 270A was leviable since it was hit by the exemption by

the prescribed in u/s 270A(6) on the premise that the assesse was under

bonafide belief of availability of deduction u/s 80P(2)(d). It was further

argued that in the earlier years as well as during the year under

consideration the claim of the assesse u/s 80P(2)(d) stands allowed u/s

143(1) by the CPC. The assesse has submitted that alternatively no

penalty is leviable in his case as it made a request for grant of immunity

within the meanings of u/s 270AA. The assesse however submitted that

the application for grant of immunity was made by it much after the

passing of the penalty order in its case dated 16.03.2022.

3.0 The Ld.DR submitted that the ld.AO has rightly levied the penalty

u/s.270A and that the Ld.CIT(A) has rightly sustained the same. A

reference was made to the following extracts of AO’s order :

“…..4.3 It is seen from the submissions that the assessee claimed

exempt income under Schedule-El at Rs.1,09,42,989/-. On a perusal of

the computation statement it is seen that the same represents the share

of profit and interest on investment in cooperative Bank and the assessee

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has categorized the same under "Income with full exemption". The

relevant portion are reproduced below:

Income with full exemption

INCOME SECTION AMOUNT

Share in income from AOP/BOI 86 16,020/-

INTERES:- Interest on investment in 1,09,26,969/-

TOTAL EXEMPTED INCOME 1,09,42,969/-

4.4 As the assessee is a cooperative urban bank engaged in banking

business as defined under Banking Companies Regulation Act, 1949, the

assessee is not eligible for deduction u/s 80P(2)(d). Hence the claim of deduction of Rs. 1,09,26,969/- İs rejected.

4.5 Further the assessee has claimed the share of income from

AOP/BOl of Rs. 16,020/- as exempt. But has not stated under which

provisions the assessee made its claim as exempt. Further no details or

the reasoning for the claim as exempt income is provided even for the

SCN issued. Hence the same is not acceded to and rejected

accordingly.

4.6 In view of this, the entire amount of Rs. 1,09,42,989/-, claimed

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under Schedule-El as exempt is added to the Total Income of the

assessee and brought to tax. ….”

4.0 It was submitted that the assesse had shown the impugned

interest of Rs.1,09,42,989/- under the schedule-EI categorizing the same

has income with full exemption. It was argued that the AO has rightly

concluded that since the assesse is a cooperative bank and not a

cooperative society, deduction u/s 80P(2)(d) was not available to it. The

claim thus fell under the mischief of section 270A for imposition of

penalty.

5.0 We have heard the rival submissions in the light of facts of the

case and materials brought on records. It is an undisputed fact of the

case that the assesse is a cooperative bank and not a cooperative

society, and therefore the deduction u/s 80P(2)(d) would not be available

to it. Without prejudice it is seen that the assesse has shown the same

under schedule-EI and hence ineligible for deduction. It is trite law that

when provisions of the act are unambiguous, no interpretation thereof is

permissible. The alternate arguments of the assesse qua immunity u/s

270AA is also non-maintainable. Admittedly, the assesse filed the

application much after the passing of the penalty order and thus leading

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to a safe presumption of an afterthought. The assessment order u/s 143(3) was passed on 27.12.2019 and the assesse was eligible to file an application for immunity u/s 270AA by 31.01.2020. Accordingly, it is held that the penalty order u/s. 270A dated 16.03.2022 does not requires any interference at this stage. The order of Ld.CIT(A) 20.11.2023 is therefore confirmed and the appeal of the assesse stands dismissed.

6.0 In the light of the above, the appeal stands dismissed. Order pronounced on 10th July, 2024 at Chennai.

Sd/- Sd/- (एबी ट�. वक�) (अ"मताभ शु(ला) (ABY T VARKEY) (AMITABH SHUKLA) $या%यक सद&य / Judicial Member लेखा सद य /Accountant Member चे$नई/Chennai, (दनांक/Dated: 10th July, 2024. KB/- आदेश क� �%त)ल*प अ+े*षत/Copy to: 1. अपीलाथ�/Appellant 2. ��यथ�/Respondent 3. आयकर आयु,त/CIT, Coimbatore 4. *वभागीय �%त%न/ध/DR 5. गाड2 फाईल/GF