The Tirupati Co-Operative Bank Limited, Tirupati V. Director of Income Tax(I&CI), Hyderabad

ITA 103/Hyd/2019

• Counselvise Citation: [2019] 112 COUNSELVISE.COM (IT) 0752 (ITAT-HYDERABAD)
• Duration Of Justice: 10 month(s) 21 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 19-12-2019
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB-B
• Next Hearing Date: 18-11-2019
• Assessment Year: 2011-2012
• Appeal Filed On: 28-01-2019
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: NILANJAN DEY
• Assessee Lawyers: S RAMA RAO
• Keywords: Set aside
• Section: 273B

Judgement Text

1 IN THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD BENCH B, HYDERABAD BEFORE SMT. P. MADHAVI DEVI, JUDICIAL MEMBER AND SHRI A. MOHAN ALANKAMONY, ACCOUNTANT MEMBER ITA NOS.103 TO 109/HYD/2019 ASSESSMENT YEAR: 2011 - 12 TO 2016 - 17 THE TIRUPATI COOPERATIVE BANK LIMITED, TIRUPATI. PAN: AAAAT 9912 D VS. DIRECTOR OF INCOME TAX (INTELLIGENCE & CRIMINAL INVESTIGATION), HYDERABAD. (APPELLANT) (RESPONDENT) ASSESSEE BY: SRI S. RAMA RAO REVENUE BY: SRI NILANJAN DEY, DR DATE OF HEARING: 18/11/2019 DATE OF PRONOUNCEMENT: 19 /12/2019 ORDER PER A. MOHAN ALANKAMONY, AM.: ALL T H E ABOVE CAPTIONED APPEALS ARE FILED BY THE ASSESSEE AGAINST THE ORDER S OF THE LD. CIT(A), TIRUPATI IN APPEAL NO S . 10019 TO 10023 AND 10004 & 1000 5/2017 - 18/CIT(A)/TPT , ALL DATED 20/11/2018 PASSED U/S. 271FA R.W.S 250(6) OF THE ACT FOR THE A.Y S 2011 - 12 TO 20 16 - 17 . SINCE, T HE ASSESSEE HAS RAISED IDENTICAL GROUNDS FOR ALL THE AYS ON THE SAME ISSUE , ALL THE APPEALS ARE CLUBBED TOGETHER AND DISPOSED OFF BY THIS COMMON ORDER. 2 2. THE ASSESSEE HAS RAISED SEVERAL GROUNDS IN ALL ITS APPEALS HOWEVER, THE CRUX OF THE ISSUE IS THAT THE LD CIT (A) HAS ERRED IN CONFIRMING THE LEVY OF PENALTY U/S. 271FA OF THE ACT WITHOUT APPRECIAT ING THE GENUINE REASONS FOR SUCH DEFAULT. 3. BRIEF FACTS OF THE CASE ARE THAT THE ASSESSEE IS A COOPERATIVE BANK WHICH IS UNDER THE OBLIGATION TO FILE STATEMENT OF SPECIFIC FINANCIAL TRANSACTIONS IN FORM NO. 61A U/S. 285VA(1) OF THE ACT WITHIN THE STIPULA TED TIME BEFORE THE REVENUE . SINCE, THE ASSESSEE HAD NOT FILED THE A BOVE ST A TED STATEMENTS WITHIN THE STIPULATED PERIOD OF TIME LIMIT PRESCRIBED UNDER THE ACT , THE LD. DIT (I & CI) INVOKED THE PENAL PROVISIONS OF SECTION 271FA OF THE ACT AND LEVIED PENALTY IN THE CASE OF THE ASSESSEE FOR ALL THE AYS IN APPEAL BEFORE US. BEFORE THE LD. CIT (A), THE ASSESSEE HAD SUBMITTED THAT THE ASSESSEE HAD E - FILED THE REQUISITE DOCUMENTS THROUGH COMPUTE R AFTER BEING POINTED OUT BY THE DIT (I & CI) AND FURTHER ERRORS THAT HAD OCCURRED DUE TO OMISSION OF CERTAIN TRANSACTIONS WERE ALSO BEING RECTIFIED. THE ASSESSEE HAD FURTHER SUBMITTED THAT THERE WAS NO WILFUL DEFAULT ON ITS PART AS THE LAPSE AND OMISSIONS W ERE ONLY DUE TO RECENT COMPUTERIZATION OF THE ACCOUNTS OF THE ASSESSEE AND MODERNIZATION OF ITS SYSTEM S MANAGEMENT. HOWEVER, THE LD. CIT (A) BRUSHED ASIDE THE SUBMISSION S OF THE LD. AR AND CONFIRMED THE ORDER OF THE LD. DIT (I & CI) AS THERE WERE NUMBER OF OMISSI ONS WHILE REPORTING THE PARTICULARS. 3 4. BEFORE US, THE LD. AR SUBMITTED THAT THE ASSESSEE IS A SMALL COOPERATIVE SOCIETY CARRYING ON BANKING BUSINESS FOR ITS MEMBERS WHO ARE POOR PEOPLE BELOW POVERTY LINE IN TIRUPATI. IT WAS FURTHER SUBMITTED THAT THE S TAFF OF THE COOPERATIVE SOCIETY ARE NOT WELL VERSED AND DUE TO COMPUTERIZATION OF THE ACCOUNTS SUCH LAPSES HAD OCCURRED. IT WAS FURTHER PLEADED THAT CERTAIN PARTICULARS WERE OMITTED DUE TO IGNORANCE AND NOT DUE TO THE WILFUL FAULT OF THE ASSESSEE. HENCE, IT WAS PLEADED TH A T THE PENALTY LEVIED BY THE LD. DIT (I & CI) INVOKING THE PROVISIONS OF SECTION 271FA OF THE ACT WHICH IS FURTHER CONFIRMED BY THE LD. CIT (A) MAY BE DELETED. 5. WE HAVE HEARD THE RIVAL SUBMISSIONS AND CAREFULLY PERUSED THE MATERIALS ON RECORD. FROM THE FACTS O F THE CASE IT APPEARS THAT THERE IS NO WILFUL DEFAULT ON THE PART OF THE ASSESSEE FOR THE LAPSE. MOREOVER, THE OMISSION S AND ERRORS HAVE OCCURRED DUE TO THE RECENT COMPUTERIZATION OF THE ACCOUNTS OF THE ASSESSEE . IN THIS SITUATION, TAKING A LENIENT VIEW AND DRAWING STRENGTH FROM THE PROVISIONS OF SECTION 273B OF THE ACT, WE HEREBY SET ASIDE THE ORDER OF THE LD CIT (A) AND DIRECT THE LD. DIT (I & CI) TO DELETE THE LEVY OF PENALTY U/S. 271FA OF THE ACT IN THE CASE OF THE ASSESSEE FOR ALL THE RELEVANT AYS WHICH ARE IN APPEAL BEFORE US. IT IS ORDERED ACCORDINGLY. 4 6. IN THE RESULT, ALL THE APPEALS OF THE ASSESSEE ARE ALLOWED. PRONOUNCED IN THE OPEN COURT ON 19 TH DECEMBER, 2019. SD/ - SD/ - (P. MADHAVI DEVI) ( A. MOHAN ALANKAMONY ) JUDICIAL MEMBER ACCOUNTANT MEMBER HYDERABAD, DATED : 19 TH DECEMBER , 2019 OKK COPY TO: - 1) THE TIRUPATI COOPERATIVE BANK LIMITED, 15 - 1 - 23G, CAR STREET, TIRUPATI 517 501. 2) DIRECTOR OF INCOME TAX (INTELLIGENCE & CRIMINAL INVESTIGATION), 2 ND FLOOR, AAYAKAR BHAVAN, BASHEER BAGH, HYDERABAD 500 004. 3) THE COMMISSIONER OF INCOME TAX (APPEALS), AAYAKAR BHAVAN, TIRUPATI - 517501.. 4) PRINCIPAL COMMISSIONER OF INCOME TAX, TIRUPATI. 5) THE DR, ITAT, HYDERABAD 6) GUARD FILE