THE BHANDARA DIST. CENTRAL CO-OP BANK LIMITED , BHANDARA V. DIRECTOR OF INCOME TAX ( INTELLIGENCE AND CRIMINAL INVESTIGATION ) , NAGPUR

ITA 175/NAG/2018

AI Insights

The case involves a series of appeals by The Bhandara Dist. Central Co-op. Bank Limited challenging the penalty orders issued by the Assessing Officer under section 271FA of the Income-tax Act for the assessment years 2007-08 to 2016-17. The appeals were admitted despite a delay of 392 days, as the reasons for the delay were deemed satisfactory. However, the core issue was the jurisdiction of the Tribunal to hear these appeals, as section 253(1) of the Act does not provide for direct appeals against penalty orders under section 271FA. The Tribunal referenced a similar case and a judgment from the Rajasthan High Court, which suggested that the assessee could seek alternative remedies.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 301437 (ITAT-NAGPUR)
• Duration Of Justice: 5 year(s) 3 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 26-07-2023
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: DB
• Assessment Year: 2011-2012
• Appeal Filed On: 23-07-2018
• Other Referred Cases: Nanded District Central Co-op. Bank Ltd. vs. Director of Income Tax (Intelligence & Criminal Investigation), Director of IT vs. Ravi Vijay & Anr.
• Laws Referred To: Income-tax Act, 1961
• Result in Favour of: Revenue
• Court: TRIBUNAL

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL, NAGPUR BENCH (At e- Court, Pune) BEFORE SHRI R.S.SYAL, VICE PRESIDENT AND SHRI S.S.VISWANETHRA RAVI, JUDICIAL MEMBER आयकर अऩीऱ सं. /ITA No.171 to 180/Nag/2018 ननधधारण वषा / Assessment Years : 2007-08 to 2016-17 The Bhandara Dist. Central Co-op. Bank Limited JM Patel College Road, Civil Lines, Bhandara, Maharashtra – 441904 TAN : NGPTO1255C Vs. Director of Income Tax (Intelligence & Crl. Investigation), Nagpur Appellant Respondent Assessee by : Shri Sanket Bhattad Revenue by : Smt. Rashmi Mathur (Jt.CIT) स ु नवधई की तधरीख / Date of Hearing : 27.07.2023 घोषणध की तधरीख / Date of Pronouncement : 27.07.2023 आदेश / ORDER PER BENCH: This batch of ten appeals by the assessee assails the correctness of the penalty orders passed by the Assessing Officer (AO) u/s 271FA of the Income-tax Act, 1961 (hereinafter also called „the Act‟) in relation to the assessment years 2007-08 to 2016-17. 2 ITA Nos.171 to 180/Nag/2018 The Bhandara Dist. Central Co-op. Bank Limited 2. There is a delay of 392 days in presenting the appeals before the Tribunal. The assessee has filed an affidavit in support of the delay. We are satisfied with the reasons for the delay. Condoning the same, we admit them for disposal on merits. 3. We have heard the rival contentions and perused the record. It is seen that the instant appeals have been preferred directly against the penalty orders u/s 271FA passed by the AO. Section 253 of the Act provides an exhaustive inventory of appeals that can be preferred before the Tribunal. Sub-section (1) sets out the orders passed under the relevant sections that an assessee can challenge before the Tribunal. Similarly, sub-section (2) provides a list of sections, the orders passed where under, can be challenged by the Revenue. There is no provision u/s 253(1) entitling an assessee to file a direct appeal to the Tribunal against the penalty order passed by the AO u/s 271FA. Hence, such orders having been appealed before the Tribunal without jurisdiction, cannot be lawfully prosecuted. It is observed that similar issue came up for consideration before the Pune Tribunal in several cases including Nanded District Central Co-op. Bank Ltd. vs. Director of Income Tax (Intelligence & Criminal Investigation) in ITA No.1617/Pune/2018. Vide order dated 13.01.2022, the Tribunal 3 ITA Nos.171 to 180/Nag/2018 The Bhandara Dist. Central Co-op. Bank Limited dismissed the appeal preferred by the assessee against penalty order passed by the AO u/s 271FA of the Act. Considering the judgment of the Hon‟ble Rajasthan High Court in Director of IT vs. Ravi Vijay & Anr. (2012) 252 CTR (Raj) 228, the Tribunal also gave liberty to the assessee for taking recourse to the alternative remedy as suggested in the judgment, if so desired. We also order accordingly. 4. In the result, all the appeals stand dismissed. Order pronounced in the Open Court on 27 th July, 2023. Sd/- Sd/- (S.S. VISWANETHRA RAVI) (R.S.SYAL) JUDICIAL MEMBER VICE PRESIDENT ऩ ु णे / Pune; ददनधंक / Dated : 27 th July, 2023 GCVSR आदेश की प्रतिलिपि अग्रेपिि / Copy of the Order forwarded to : 1. अऩीऱधथी / The Appellant. 2. प्रत्यथी / The Respondent. 3. ववभधगीय प्रनतननधध, आयकर अऩीऱीय अधधकरण, “नधगऩ ु र” ब ें च, / DR, ITAT, “Nagpur” Bench 4. गधर्ा फ़धइऱ / Guard File. // True Copy // आदेशधन ु सधर / BY ORDER, // True Copy // Senior Private Secretary आयकर अऩीऱीय अधधकरण, ऩ ु णे / ITAT, Pune 4 ITA Nos.171 to 180/Nag/2018 The Bhandara Dist. Central Co-op. Bank Limited * Date 1. Draft dictated on 27-07-2023 Sr.PS 2. Draft placed before author 27-07-2023 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.