MANAMBOOR SERVICE CO-OP BANK LTD,TRIVANDRUM vs. THE ITO WARD 2(1), TRIVANDRUM

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ITA 571/COCH/2023Status: DisposedITAT Cochin23 October 2024AY 2017-18Bench: Shri Satbeer Singh Godara (Judicial Member), Shri Amarjit Singh (Accountant Member)2 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 delay in filing the tax audit report, possibly due to the need for state government approval, constituted a reasonable cause. Consequently, the penalty levied under section 271B was deleted.

What were the facts?

The assessee, a co-operative bank, defaulted in filing its tax audit report by the due date. A penalty under section 271B was levied for this default. The assessee argued that there was a reasonable cause for the delay.

What were the issues?

Whether the delay in filing the tax audit report by the assessee constituted a reasonable cause for the purpose of avoiding penalty under section 271B.

Which sections of the Income-tax Act were involved?

Section 271B,Section 139(1),Section 273B

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, COCHIN BENCH, COCHIN

Before: Shri Satbeer Singh Godara & Shri Amarjit Singh

For Respondent: Smt. V. Swarnalatha, Sr. D.R
Hearing: 22.08.2024Pronounced: 23.10.2024

O R D E R Per Bench This assessee’s appeal for A.Y. 2017-18 arises against the National Faceless Appeal Centre, Delhi [CIT(A)]’s DIN & Order No. ITBA/NFAC/S/250/2023- 24/1053834480(1) dated 21.06.2023 in proceedings u/s. 250 of the Income Tax Act, 1961 (the Act).

Case called twice. None appears at assessee’s behest. We accordingly proceed exparte against the assessee.

2.

We notice at the outset that both the learned lower authorities have levied sec.271B penalty in assessee’s hands on account of it’s default in filing tax audit report within the “due” date of filing u/sec.139(1) of the Act. Learned DR could Manamboor Service Co-op. Bank Ltd. hardly dispute that the assessee had duly filed the said tax audit report well before the sec.143(3) regular assessment framed on 20.12.2019. The only inference which arises in this factual backdrop is that possibility of some delay in such a case requiring the state government authorities approval, could not be altogether ruled out. We conclude in these facts that all this delay forms a “reasonable” cause in assessee’s instant case u/sec.273B of the Act. The impugned penalty is deleted therefore. Ordered accordingly.

3.

This assessee’s appeal is allowed in above terms.

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