ADAT FARMERS SERVICE CO-OP BANK LTD,THRISSUR vs. THE ITO WARD 2(1), THRISSSUR

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ITA 335/COCH/2023Status: DisposedITAT Cochin25 September 2024AY 2012-13Bench: Shri Satbeer Singh Godara (Judicial Member), Shri Amarjit Singh (Accountant Member)3 pages
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What did the Tribunal hold?

The Tribunal upheld the rejection of the Section 80P deduction due to non-compliance with Section 80A(5). However, it deleted the penalty under Section 271B, finding a reasonable cause for the delay in filing the audit report.

What were the facts?

The assessee claimed deduction under Section 80P, but the lower authorities rejected it citing Section 80A(5) as the return was filed after the assessment order. The assessee also faced a penalty under Section 271B for delayed submission of the audit report.

What were the issues?

Whether the Section 80P deduction is admissible when the return is filed after the assessment order, and whether a reasonable cause existed for the delay in filing the audit report to avoid penalty.

Which sections of the Income-tax Act were involved?

Section 80P,Section 80A(5),Section 271B,Section 139(1),Section 273B

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Income Tax Appellate Tribunal, COCHIN BENCH, COCHIN

Before: Shri Satbeer Singh Godara & Shri Amarjit Singh

For Respondent: Smt. Swarnalatha, Sr. D.R
Hearing: 12.08.2024Pronounced: 25.09.2024

Appellant by: ------- None ------- Respondent by: Smt. Swarnalatha, Sr. D.R. Date of Hearing: 12.08.2024 Date of Pronouncement: 25.09.2024 O R D E R Per Bench These assessee’s twin appeals & 335/Coch/2023, for assessment years 2009-10 & 2012-13, arise against separate orders of the National Faceless Appeal Centre, Delhi [CIT(A)] dated 15.02.2023 and 13.12.2023, in proceedings u/s. 144 r.w.s. 147 and s. 271B of the Income Tax Act, 1961 (hereinafter "the Act"), respectively.

Cases called twice. None appears at assessee’s behest. It is accordingly proceed ex-parte.

2.

It emerges at the outset that there are very few relevant facts to be taken note of whilst deciding the assessee’s sole substantive grievance claiming s. 80P deduction in ITA No.334/Coch/2923. This is for the precise reason that both the lower authorities have rejected assessee’s claim amounting to Rs.22,56,349/- for having not & 335/Coch/2023 Adat Farmers Service Co-op. Bank Ltd. raised it in a “return” in light of s. 80A(5) of the Act. A perusal of the case file suggests that the assessee claims to have filed its return (with deduction) on 06.12.2016 whereas the Assessing Officer had framed his assessment on 25.11.2016 very well before that. That being the case, we conclude that both the learned lower authorities have rightly invoked s.80A(5) of the Act for the purpose of rejecting assessee’s 80P deduction in ITA No.334/Coch/2023. Rejected accordingly.

Delay of 23 days in filing the instant appeal stands condoned in light of the assessee’s condonation averments in light of Collector, Land Acquisition vs., MST Katiji [1987] 167 ITR 471 (SC) having settled the law long back that all such technical aspects must make a way for the cause of substantial justice.

3. Next comes assessee’s latter appeal in seeking to reverse both the lower authorities’ action levying s. 271B penalty of Rs.1,50,000/- on account of its failure to submit audit report within the prescribed ‘due date’ u/s. 139(1) of the Act. We notice in this factual matter that the assessee had filed its audit report manually in August, 2019. It had all along claimed that the delay was on account of the fact that it was awaiting the corresponding audit report from the state government department, which has gone un-rebutted by the department. That being the case, we delete the impugned s. 271B penalty since there exists a “reasonable” cause u/s. 273B as the delay was attributed to the state government department(s) relating to the co-operative societies. The impugned penalty is directed to be deleted.

3.

Delay of 25 days in filing the instant appeal stands condoned in light of the assessee’s condonation averments in light of Collector, Land Acquisition vs., MST Katiji [1987] 167 ITR 471 (SC) having settled the law long back that all such technical aspects must make a way for the cause of substantial justice. stands allowed in above terms. A copy of this common order be placed in the respective case files. Order pronounced in the open court on 25th September, 2024.

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