The Cumbum Co-operative Town Bank Limited , Prakasam V. Dy. Commissioner of Income Tax, (I&CI), Hyderabad

ITA 2040/Hyd/2018

• Counselvise Citation: [2021] 108 COUNSELVISE.COM (IT) 5394 (ITAT-HYDERABAD)
• Duration Of Justice: 2 year(s) 6 month(s) 25 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 07-05-2021
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB-A
• Next Hearing Date: 25-03-2021
• Assessment Year: 2013-2014
• Appeal Filed On: 12-10-2018
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: S RAMA RAO

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD BENCHES A : HYDERABAD (THROUGH VIDEO CONFERENCE) BEFORE SHRI S.S.GODARA, JUDICIAL MEMBER AND SHRI LAXMI PRASAD SAHU, ACCOUNTANT MEMBER I.T.A. NO. 2040/HYD/2018 ASSESSMENT YEAR: 2013-14 THE CUMBUM CO-OPERATIVE TOWN BANK LTD., CUMBUM PRAKASAM DISTRICT [PAN: AABAT3057A] VS THE DIRECTOR OF INCOME TAX (INTELLIGENCE & CRIMINAL INVESTIGATION), HYDERABAD (APPELLANT) (RESPONDENT) FOR ASSESSEE : SHRI S.RAMA RAO, AR FOR REVENUE : SHRI SUNIL KUMAR PANDEY, DR DATE OF HEARING : 25-03-2021 DATE OF PRONOUNCEMENT : 07-05-2021 O R D E R PER S.S.GODARA, J.M. : THIS ASSESSEES APPEAL FOR AY.2013-14 ARISES FROM TH E CIT(A)-1, GUNTURS ORDER DATED 26-07-2018 PASSED IN APPEAL NO.10003/2017-18, ORDER U/S.250 OF THE INCOME TAX AC T, 1961 [IN SHORT, THE ACT]. HEARD BOTH THE PARTIES. CASE FILE PERUSED. 2. WE NOTICE AT THE OUTSET THAT BOTH THE LEARNED LOWER AUTHORITIES HAVE IMPOSED SECTION 271FA PENALTY IN IS SUE OF RS.1,28,700/- ON THE ASSESSEE ON ACCOUNT OF ITS ALLEG ED FAILURE IN REPORTING THE SPECIFIED FINANCIAL TRANSACTION U/S .285BA OF THE ACT. THE ASSESSING OFFICER AS WELL AS THE CIT(A) ARE OF THE ITA NO.2040/HYD/2018 :- 2 -: VIEW THAT THE ASSESSEE HAS NOT BEEN ABLE TO EXPLAIN THE MITIGATING CIRCUMSTANCES QUA THE IMPUGNED NON-COMPLIANCE. 3. WE HAVE GIVEN OUR THOUGHTFUL CONSIDERATION TO RIVAL PLEADINGS. SUFFICE TO SAY, THERE IS HARDLY ANY DISPU TE THAT THIS ASSESSEE IS A CO-OPERATIVE BANK. THIS TRIBUNALS CO- ORDINATE BENCHS DECISION (2016) [74 TAXMANN.COM 97] (KOL-TRI B) DURGAPUR STEEL PEOPLES CO-OPERATIVE BANK LTD., VS. DIT HOLDS THAT SUCH AN ASSESSEE COULD NOT BE HELD TO BE STANDING TO GAIN BY VIRTUE OF A DEFAULT COMMITTED U/S.285B OF THE ACT. NO R THAT SUCH AN UN-INTENTIONAL DEFAULT CAUSES ANY LOSS TO THE DEPARTMENT PER SE . 3.1. COUPLED WITH THIS, THE ASSESSEES FURTHER CASE BE FORE US IS THAT FORM-60A SPECIFYING CORRESPONDING FINANCIAL TRANSACTIONS STOOD INTRODUCED UNDER THE PROVISIONS OF THE ACT W.E.F.01-04-2015 FOLLOWED BY YET ANOTHER AMENDMENT FRO M 01- 04-2016 WHEREAS WE ARE DEALING WITH AY.2013-14 ONLY . 3.2. WE ACCORDINGLY ARE OF THE VIEW THAT BOTH THE LEARN ED LOWER AUTHORITIES HAVE ERRED IN LAW AND ON FACTS IN I MPOSING THE IMPUGNED PENALTY IN ASSESSEES CASE. THE SAME I S DIRECTED TO BE DELETED. 4. THIS ASSESSEES APPEAL IS ALLOWED. ORDER PRONOUNCED IN THE OPEN COURT ON 7 TH MAY, 2021 SD/- SD/- (LAXMI PRASAD SAHU) (S.S .GODARA) ACCOUNTANT MEMBER JUDICIAL MEMBER HYDERABAD, DATED: 07-05-2021 TNMM ITA NO.2040/HYD/2018 :- 3 -: COPY TO : 1.THE CUMBUM CO-OPERATIVE TOWN BANK LTD., D.NO. 10-2-25, MAIN BAZAR, CUMBUM, PRAKASAM DIST., 2.THE DIRECTOR OF INCOME TAX (INTELLIGENCE & CRIMIN AL INVESTIGATION), HYDERABAD. 3.THE CIT(APPEALS)-1, GUNTUR. 4.THE CCIT-VIJAYAWADA. 5.D.R. ITAT, HYDERABAD. 6.GUARD FILE.