The Pariyaram Service Co-op Bank Ltd, Trichur V. The ACIT, Thrissur

ITA 276/COCH/2019

• Counselvise Citation: [2019] 116 COUNSELVISE.COM (IT) 7456 (ITAT-COCHIN)
• Duration Of Justice: 3 month(s) 1 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 24-07-2019
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: DB
• Assessment Year: 2011-2012
• Appeal Filed On: 22-04-2019
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: A S BINDHU
• Keywords: Principle of natural justice; Reasonable cause
• Section: 273B; 133(6)

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL COCHIN BENCH , COCHIN BEFOR E S/ SHRI CHANDRA POOJARI, AM & GEORGE GEORGE K. JM I.T.A. NO. 2 7 6 / COCH/201 9 ASSESSMENT YEAR : 2011 - 12 M/S. PARIYARAM SERVICE CO - OPERATIVE BANK L TD., PARIYARAM, CHALAKUDY POST, THRISSUR - 680 721. [PAN: AAA BP 0683J] VS. THE I NCOME TAX OFFICER (I &CI), THRISSUR. ( APPELLANT) ( RESPONDENT) REVENUE BY S MT. A.S. BIN DHU, SR. DR ASSESSEE BY NONE (ADJOURNMENT APPLICATION DATED 22/07/2019) DATE OF HEARING 2 3 / 0 7 / 201 9 DATE OF PRONOUNCEMENT 24 / 07 / 201 9 O R D E R PER CHANDRA POOJAR I, ACCOUNTANT MEMBER: THIS APPEAL FILED BY THE ASSESSEE IS DIRECTED AGAINST THE ORD ER OF THE CIT(A) - I, KOCHI DATED 26.02.2019 ARISING OUT OF THE ORDER PASSED U/S. 272A(2)(C) R.W.S. 274 OF THE ACT AND PERTAIN TO THE ASSESSMENT YEAR 2011 - 12. 2. NON E APPEARED ON BEHALF OF THE ASSESSEE. BEFORE US, THE ASSESSEE FILED AN ADJOURNMENT APPLICATION DATED 22/07/2019. SINCE IT IS A COVERED MATTER, WE PROCEED TO DECIDE THE APPEAL EX PARTE AFTER HEARING THE LD. DR. I.T.A. 276 /C /201 9 2 3 . ALL THE GROUNDS OF APPEAL RELATE T O THE LEVY OF PENALTY U/S. 272A(2)(C) OF THE I.T. ACT FOR NON - COMPLIANCE OF NOTICE U/S. 133(6) BY THE INCOME TAX OFFICER (INTELLIGENCE), THRISSUR. 4 . THE FACTS OF THE CASE ARE THAT THE ASSESSEE IS A PRIMARY AGRICULTURAL CO - OPERATIVE SOCIETY. THE INCOME TAX OFFICER(INTELLIGENCE), THRISSUR ISSUED NOTICE U/S. 133(6) OF THE I.T. ACT VIDE LETTER DATED 06 /09/2013 TO THE SECRETARY OF THE ASSESSEE - SOCIETY WHEREIN FOLLOWING INFORMATION WAS SOUGHT FOR : - SL. NO. INFORMATION REQU IRED 1 DETAILS OF DEPOSITORS OF CASH EXCEEDING RS. 5 LAKHS DURING THE F.Y. 2010 - 11, 2011 - 12 & 2012 - 13. (INFORMATION REGARDING CASH DEPOSITS IN SB ACCOUNT WHERE THE AGGREGATE OF CASH DEPOSITS IS RS. 5 LAKHS OR ABOVE FOR THE CONCERNED YEARS. WHILE FURNISHI NG THE INFORMATION, ALL THE CASH TRANSACTION IN THE ACCOUNT ARE TO BE REFLECTED DATE WISE AND NOT MERELY THE AGGREGATE AMOUNT. 2. DETAILS OF THE PAYMENT OF INTEREST EXCEEDING RS.10,000/ - MADE TO THE DEPOSITORS INCLUDING INTEREST ON FIXED DEPOSITS. 4 . 1 THE ABOVE INFORMATION WAS NOT FURNISHED TO THE DEPARTMENT. THEREFORE, THE JOINT DIRECTOR OF INCOME TAX (I&CI ) , KOCHI INITIATED PENALTY PROCEEDINGS U/S. 272A(2)(C) OF THE ACT . THE ASSESSEE DID NOT APPEAR IN THE PENALTY PROCEEDINGS AND DID NOT FURNISH THE REQUIRED INFORMATION. IT WAS STATED THAT THE ASSESSEE HAD SOUGHT TIME FOR PRODUCING THE DETAILS CALLED FOR IN THE NOTICE ISSUED U/S. 133(6) OF THE I.T. ACT. FURTHER, IT WAS STATED THAT THE PENALTY ORDER IS BARRED BY LIMITATION. HENCE, IT WAS S UBMITTE D TH AT THERE WAS REASONABLE CAUSE AS MANDATED U/S. 273B OF THE ACT FOR NOT IMPOSING PENALTY U/S. 272A(2)(C) OF THE ACT. HOWEVER , THE JOINT DIRECTOR OF INCOME TAX(I NTELLIGENCE), KOCHI REJECTED THE I.T.A. 276 /C /201 9 3 CONTENTIONS OF THE ASSESSEE AND IMPOSED PENALTY OF RS. 56,3 00/ - U /S. 274 R.W.S. 272A(2)(C) OF THE I.T. ACT FOR NON FURNISHING OF INFORMATION U/S. 133(6) FOR THE ASSESSMENT YEAR 2011 - 12 . 5 . AG AINST THE ORDER OF THE PENALTY U/S. 274 R.W.S.272(2)(C) OF THE ACT , THE ASSESSEE CARRIED THE MATTER IN APPEAL BEFORE THE CIT(A) . THE CIT(A) DISMISSED THE APPEAL OF THE ASSESSEE BY PLACING RELIANCE ON THE JU DGMENT OF THE APEX COURT IN THE CASE OF KATHIROOR SERVICE CO - OPERATIVE BANK LTD. AND OTHERS VS. COMMISSIONER OF INCOME TAX AND OTHERS (2013) ( 360 ITR 243 ) WHEREIN IT WAS HELD THAT THE ITO(INTELLIGENCE) HAS THE AUTHORITY UNDER THE INCOME TAX ACT TO ISSUE NOTICE U/S. 133(6) OF THE ACT. 6 . WE HAVE HEARD THE LD. DR AND PERUSED THE MATERIAL ON RECORD. WE FIND THAT IN THE ABOVE CASE, THE ASSESSING OFFICER HAS PASSED PENALTY OR DERS WITHOUT HEARING THE ASSESSEE. THEREFORE, IN THE INTEREST OF JUSTICE AND EQUITY, AS A LAST CHANCE, WE ARE OF THE VIEW THAT THE ASSESSEE SHOULD BE GIVEN ONE MORE OPPORTUNITY OF HEARING IN THE ABOVE CASE. FOR THE LIMITED PURPOSE OF HEARING THE ASSESSEE AND TO COMPLY WITH THE PRINCIPLE OF NATURAL JUSTICE, WE RESTORE THE APPEAL TO THE FILE OF THE ASSESSING OFFICER. THE ASSESSEE SHALL CO - OPERATE WITH THE DEPARTMENT AND SHALL SUBMIT BEFORE THE ASSESSING OFFICER THAT THERE IS REASONABLE CAUSE AS MANDATED U/S . 273B FOR NON - LEVY OF PENALTY U/S. 272A(2)(C) I.T.A. 276 /C /201 9 4 OF THE I.T. ACT. THUS, THE GROUNDS OF APPEAL OF THE ASSESSEE ARE ALLOWED FOR STATISTICAL PURPOSES. 8 . IN THE RESULT, THE APPEAL FILED BY THE ASSESSE IS PARTLY ALLOWED FOR STATISTICAL PURPOSES. . O RDER P RONOUNCED IN THE OPEN COURT ON THE 24 TH JULY, 2019 . SD/ - SD/ - (GEORGE GEORGE K.) (CHANDRA POOJARI) JUDICIAL MEMBER ACCOUNTANT MEMBER PLACE: KOCHI DATED: 24 TH JULY, 2019 G J COPY TO: 1. M/S. M/S. PARIYARAM SERVICE CO - OPERATIVE BANK L TD., PARIYARAM, CHALAKUDY POST, THRISSUR - 680 721. T HE INCO ME - TAX OFFICER (I &CI), THR I SSUR . 3. THE COMMISSIONER OF INCOME - TAX (AP P EALS) - I , KOCHI 4 . THE PR. COMMISSIONER OF INCOME - TAX, THRISSUR . 5. D. R., I.T.A.T., COCHIN BENCH, COCHIN. 6 . GUARD FILE. BY ORDER (ASSISTANT REGISTRAR) I.T.A.T., COCHIN