M/S PALLIYAKKAL SERVICE CO-OP BANK ,ERNAKULAM vs. ITO , KOCHI

Coming to the assessee’s former appeal ITA.No.412/ Coch./2023; there is hardly any dispute between the parties that both the learned lower authorities have erred in law and on fact in holding that the assessee had not complied with sec.142(1) notice dated 06.09.2019 and therefore, they have levied the penalty of Rs.10,000/-. It is an admitted fact that it has also been entitled for sec.80P deduction and had duly filed it’s audit report as well as all supportive documents very well before the said show cause notice which culminated in 143(3) regular assessment. That being the case, we are of the considered view that the impugned sec.272A penalty of Rs.10,000/- deserves to be deleted. Ordered accordingly.

Coming to the assessee’s latter appeal ITA.No.413/ Coch./2023; wherein both the learned lower authorities have held that it had not filed it’s tax audit report within the due date and therefore, they have levied a sum of Rs.1,50,000/- as penalty in assessee’s hands.

A perusal of the case file suggests that assessee had duly filed it’s tax audit report on 12.12.2018 and the learned

3 ITA.Nos.412 & 413/COCH./2023 Assessing Officer framed his sec.143(3) assessment on 19.02.2019. Meaning thereby, that although there was delay in filing of the said tax audit report, at the same time, possibility of delay in such a compliance could not be altogether ruled-out and attributable to the various procedural aspects including the necessary compliance to the state cooperative authorities. We thus treat the delay as a reasonable cause to delete sec.273B penalty. Ordered accordingly.

These assessee’s twin appeals I.T.A.Nos.412 & 413/ COCH./2023 are allowed in above terms. A copy of this common order be placed in the respective case files.