M/s.The Elavancherry Service Co-op Bank Ltd, Palakkad V. The DIT ( I & CI), Kochi

ITA 324/COCH/2019

• Counselvise Citation: [2019] 116 COUNSELVISE.COM (IT) 9056 (ITAT-COCHIN)
• Duration Of Justice: 2 month(s) 6 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 09-07-2019
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB
• Next Hearing Date: 08-07-2019
• Assessment Year: 2013-2014
• Appeal Filed On: 03-05-2019
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Reasonable cause
• Section: 273B; 133(6); 2

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL COCHIN BENCH, COCHIN BEFORE SHRI CHANDRA POOJARI, AM & SHRI GEORGE GEORGE K, JM ITA NO. 324 /COCH/201 9 : ASST.YEAR 201 3 - 201 4 M/S. THE ELAVANCHERY SERVICE CO - OPERATIVE BANK LIMITED NO.P.517, KARIMKULAM P.O. PALAKKAD 678 508. PAN : AAAAT7037M . VS. THE JOINT DIRECTOR OF INCOME - TAX (I & CI) KOCHI. (APPELLANT) (RESPONDENT) APPELLANT BY : -- NONE (WRITTEN SUBMISSION FILED BY SRI.SIVADAS CHITTOOR, FCA) RESPONDENT BY : SMT.A.S.BINDHU, SR.DR DATE OF HEARING : 08.07 .2019 DATE OF PRONOUNCEMENT : 09 .07. 201 9 O R D E R PER GEORGE GEORGE K, JM : THIS APPEAL AT THE INSTANCE OF THE ASSESSEE IS DIRECTED AGAINST THE ORDER OF THE CIT(A) DATED 26.02.2019. THE RELEVANT ASSESSMENT YEAR IS 201 3 - 201 4 . THE ORDER OF THE CIT(A) ARISES OUT OF THE ORDER PASSED U/S 272A(2)(C) R.W.S. 274 OF THE INCOME - TAX ACT, 1961. 2. THE BRIEF FACTS OF THE CASE ARE AS FOLLOW: THE ASSESSEE IN THE ABOVE CASE HAS CHALLENGED THE IMPOSITION OF PENALTY U/S 272A(2)(C) OF THE I.T.ACT. AT THE VERY OUTSET WE NOTICE THAT THE ASSESSEE HAD RAISED A GROUND IN THE ABOVE APPEAL THAT THE ORDER LEVYING PENALTY IS EX PARTE ORDER AND HENCE BAD IN LAW. WHEN THE ASSESSEE RECEIVED NOTICE U/S 274 OF THE I.T.ACT SHOW CAUSING FOR WHY PENALTY SHOULD NOT BE IMPOSED, THE ASSESSEE HAD SOUGHT TIME STATING THAT THE ITA NO. 324 / COCH /201 9. M/S. THE ELAVANCHERY SERVICE CO - OP BANK LTD. 2 PROVISIONS OF ISSUANCE OF NOTICE U/S 133(6) OF THE I.T.ACT WAS CHALLENGED BEFORE THE HONBLE HIG H COURT AND REQUESTED THE ASSESSING OFFICER TO AWAIT THE OUTCOME OF THE HONBLE HIGH COURTS JUDGMENT. FURTHER, THE ASSESSEE HAD SOUGHT TIME FOR PRODUCING THE DETAILS CALLED FOR IN THE NOTICE ISSUED U/S 133(6) OF THE I.T.ACT STATING THAT THE DOCUMENTS CALL ED FOR ARE VOLUMINOUS. HENCE IT CONTENDED THAT THERE WAS REASONABLE CAUSE AS MANDATED U/S 273B OF THE I.T.ACT FOR NOT IMPOSING PENALTY U/S 272A(2)(C) OF THE I.T.ACT. 3. THE LEARNED AR , SRI.SIVADAS CHITTOOR , HAS FILED A WRITTEN SUBMISSION. THE CONTENT OF THE SAME IS THAT WHILE IMPOSING PENALTY, THE ASSESSEE WAS NOT GRANTED AN OPPORTUNITY OF HEARING. THE LEARNED D.R. SUPPORTED THE ORDER OF THE INCOME - TAX AUTHORITIES. 4 . WE HAVE HEARD THE LEARNED DR AND PERUS ED THE MATERIAL ON RECORD. WE FIND THAT IN THE ABOVE CASE, THE ASSESSING OFFICER HA S PASSED PENALTY ORDER WITHOUT HEARING THE ASSESSEE . THEREFORE, IN THE INTEREST OF JUSTICE AND EQUITY, AS A LAST CHANCE, WE AR E 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 JUS TICE, WE RESTORE THE ABOVE CASE TO THE ASSESSING OFFICER. THE ASSESSEE SHALL CO - OPERATIVE 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) OF THE I.T.ACT. IT IS ORDERED ACCORDINGLY. ITA NO. 324 / COCH /201 9. M/S. THE ELAVANCHERY SERVICE CO - OP BANK LTD. 3 5. INSOFAR AS THE GROUND RELATING TO ERROR IN CALCULATION OF THE QUANTUM OF PENALTY IMPOSED U/S 272A(2)(C) OF THE I.T.ACT, THE ASSESSEE MAY FILE A RECTIFICATION PETITION BEFORE THE CONCERNED OFFICER AND RECTIFY THE MISTAKE, IF ANY, IN THE CALCULATION OF THE PENALTY IMPOSED. 6 . IN THE RESULT, THE APPEAL FILED BY THE ASSESSEE IS ALLOWED FOR STATISTICAL PURPOSES . ORDER PRONOUNCED ON THIS 09 TH DAY OF JULY, 2019 . SD/ - SD/ - ( CHANDRA POOJARI ) ( GEORGE GEORGE K. ) ACCOUNTANT MEMBER JUDICIA L MEMBER COCHIN ; DATED : 09 TH JULY, 2019 . DEVDAS* COPY OF THE ORDER FORWARDED TO : BY ORDER, (ASSTT. REGISTRAR) ITAT, COCHIN 1. THE APPELLANT. 2. THE RESPONDENT. 3. THE CIT, KOCHI. 4. CIT(A) - I , KOCHI . 5. DR, ITAT, COCHIN 6. GUARD FILE.