ATHIRAMPUZHA REGIONAL SERVICE CO -OP BANK LTD,KOTTAYAM vs. THE ITO , KOTTAYAM

The case was called twice. None appeared on behest of the assessee. Therefore, we proceeded to hear the appeal exparte qua the assessee.

The assessee’s sole substantive ground herein seeks to reverse both the learned lower authorities action levying section 271B penalty(ies) on account of the fact that it had failed to submit its tax audit report belatedly than within the “due” date u/s. 139(1) of the Act. We note in this backdrop that the assessee’s stand from the very beginning has attributed the & 628/Coch/2023 Athirampuzha Regional SCB Ltd. foregoing delay in filing the tax audit report in the course of assessment to non-approval thereof from the concerned government authority(s) as per the state co-operative law. We find that the assessee had duly submitted it’s audit report(s) very well before framing of section 143(3) assessment itself. And that the Revenue could not even dispute the assessee’s reasons explaining the impugned delay. Faced with this situation, we delete the section 271B penalty herein in these peculiar facts and circumstances. Ordered accordingly.

These assessee’s twin appeals in ITA 617 & 628/Coch/2023 are allowed in above terms. A copy of the common order be placed respective case files.