Hanuman Sahakari Dudh Utpadak Sanstha Limited, Solapur V. Income-tax Officer, Ward - 1, Solapur

ITA 1541/PUN/2018

• Counselvise Citation: [2022] 106 COUNSELVISE.COM (IT) 8385 (ITAT-PUNE)
• Duration Of Justice: 3 year(s) 10 month(s) 15 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 10-08-2022
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Assessment Year: 2014-2015
• Appeal Filed On: 25-09-2018
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Section: 271B

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL PUNE BENCH “B”, PUNE BEFORE SHRI R.S. SYAL, VICE PRESIDENT AND SHRI PARTHA SARATHI CHAUDHURY, JUDICIAL MEMBER ITA No. 1541/PUN/2018 नधा रण वष / Assessment Year : 2014-15 Hanuman Sahakari Dudh Utpadak Sanstha Ltd., At Post Chopadi, Tal. Sangola, Dist. Solapur – 413 307 PAN : AAAAH8079F Vs. ITO, Ward-1, Pandharpur Appellant Respondent आदेश / ORDER PER R.S. SYAL, VP : This appeal by the assessee is directed against the order passed by the CIT(A)-7, Pune on 29-06-2018 confirming penalty of Rs.67,700/- imposed by the Assessing Officer (AO) u/s.271B of the Income-tax Act, 1961 (hereinafter also called ‘the Act’). 2. Briefly stated, the facts of the case are that the assessee is a co-operative society, engaged in the business of purchasing milk from its members and its sale. During the year, the assessee was also in running the fodder camp aided by the Maharashtra State Government for the cattle of drought hit farmers. A return was Assessee by None Revenue by Shri Sardar Singh Meena Date of hearing 10-08-2022 Date of pronouncement 11-08-2022 ITA No. 1541/PUN/2018 Hanuman Sahakari Dudh Utpadak Sanstha Ltd., 2 filed declaring Nil income. During the course of assessment proceedings, the AO observed that the assessee society had received grants amounting to Rs.1.35 crore. Since the accounts were not audited in terms of section 44AB, the AO, after issuing notice, imposed penalty u/s.271B of the Act. Such a penalty came to be affirmed in the first appeal. Aggrieved thereby, the assessee has approached the Tribunal. 3. We have heard the ld. D.R. and gone through the relevant material on record. There is no appearance from the side of assessee despite notice. It is seen from the impugned order that the assessee is a small cooperative society dealing with poor farmers and milk sellers. The assessee narrated a detailed cause before the ld. CIT(A), as has been reproduced on pages 3 and 4 of the impugned order, which led to its failure to get the accounts audited. We are satisfied with the reasonableness of the cause. Since section 271B is subject to section 273B, and the latter section emphasizes that if a reasonable cause is established for non-compliance of the requirements that lead to imposition of penalty under certain sections, including 271B, then no penalty should be imposed. As the case under consideration is covered by ITA No. 1541/PUN/2018 Hanuman Sahakari Dudh Utpadak Sanstha Ltd., 3 section 273B, we hold that the penalty ought not to have been imposed and confirmed. We, therefore, order to delete the same. 4. In the result, the appeal is allowed. Order pronounced in the Open Court on 11 th August, 2022. Sd/- Sd/- (PARTHA SARATHI CHAUDHURY) (R.S.SYAL) JUDICIAL MEMBER VICE PRESIDENT प ु णे Pune; दनांक Dated : 11 th August, 2022 Satish आदेश क त ल प अ े षत/Copy of the Order is forwarded to: 1. अपीलाथ / The Appellant; 2. यथ / The Respondent; 3. The CIT(A)-7, Pune 4. 5. The Pr.CIT-6, Pune िवभागीय ितिनिध, आयकर अपीलीय अिधकरण, पुणे “B” / DR ‘B’, ITAT, Pune 6. गाड फाईल / Guard file आदेशान ु सार/ BY ORDER, // True Copy // Senior Private Secretary आयकर अपीलीय अिधकरण ,पुणे / ITAT, Pune ITA No. 1541/PUN/2018 Hanuman Sahakari Dudh Utpadak Sanstha Ltd., 4 Date 1. Draft dictated on 10-08-2022 Sr.PS 2. Draft placed before author 10-08-2022 Sr.PS 3. Draft proposed & placed before the second member JM 4. Draft discussed/approved by Second Member. JM 5. Approved Draft comes to the Sr.PS/PS Sr.PS 6. Kept for pronouncement on Sr.PS 7. Date of uploading order Sr.PS 8. File sent to the Bench Clerk Sr.PS 9. Date on which file goes to the Head Clerk 10. Date on which file goes to the A.R. 11. Date of dispatch of Order. *