The ITO, Ward-5(3), Baroda V. Abhyudaya Co.Op. Bank Ltd., Baroda

ITA 662/AHD/2010

• Counselvise Citation: [2012] 140 COUNSELVISE.COM (IT) 62911 (ITAT-AHMEDABAD)
• Duration Of Justice: 2 year(s) 5 month(s) 24 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 24-08-2012
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: D
• Next Hearing Date: 21-08-2012
• Assessment Year: 2005-2006
• Appeal Filed On: 02-03-2010
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: PHAGU ORAM
• Assessee Lawyers: M K PATEL
• Keywords: Reasonable cause; Ignorance of law

Judgement Text

, , , , IN THE INCOME TAX APPELLATE TRIBUNAL D BENCH, AHMEDABAD , ! '#, $% $ & BEFORE SHRI MUKUL KR.SHRAWAT, JUDICIAL MEMBER AND SHRI ANIL CHATURVEDI, ACCOUNTANT MEMBER ./ I.T.A. NO.662/AHD/2010 ( ! ) ! ) ! ) ! ) / / / / ASSESSMENT YEAR : 2005-06) THE INCOME TAX OFFICER WARD-5(3) BARODA ! ! ! ! / VS. ABHYUDAVYA CO-OP. BANK LTD. (TAKE OVER ERSTWHILE SHREE KRISHNA SAHAKARI BANK LTD.) NR.SHREE KRISHNA BHAVAN NR.CHAMPANER GATE BANK ROAD, BORODA * $% ./+, ./ PAN/GIR NO. : AAALS 0073 P ( *- / // / APPELLANT ) .. ( ./*- / RESPONDENT ) *- 0 $ / APPELLANT BY : SHRI PHAGU ORAM, SR.D.R. ./*- 1 0 $ / RESPONDENT BY : SHRI M.K. PATEL !2 1 % / / / / DATE OF HEARING : 21/08/2012 34) 1 % / DATE OF PRONOUNCEMENT : 24/08/12 $5 / O R D E R PER SHRI MUKUL KR. SHRAWAT, JUDICIAL MEMBER : THIS IS AN APPEAL AT THE BEHEST OF THE REVENUE WHIC H HAS EMANATED FROM THE ORDER OF LEARNED CIT(APPEALS)-V, BARODA DA TED 03/12/2009 PASSED FOR A.Y. 2005-06 BY RAISING FOLLOWING GROUND S:- 1. ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE, THE LEARNED CIT(A) ERRED IN DELETING THE PENALTY OF RS.9,95,800 /- LEVIED U/S.271E OF THE ACT FOR CONTRAVENTION OF PROVISIONS OF SECTI ON 269T OF THE ACT. ITA NO.662/AHD/ 2010 ITO VS. ABHYUDAYA CO-OP.BANK LTD. ASST.YEAR 2005-06 - 2 - 2. THE LEARNED CIT(A) ERRED IN NOT APPRECIATING THE FA CT THAT THE ASSESSEE BANK IS A VERY O9LD BANK WHICH HAS BEEN EN GATED IN BANKING ACTIVITIES FOR SEVERAL YEARS AND THUS CANNO T CLAIM THE BENEFIT OF IGNORANCE OF LAW FOR BREACH OF PROVISIONS OF SEC TION 269T. APART FROM BUILDING UP A GENERAL SCENARIO OF LOSS OF FAIT H IN THE COOPERATIVE BANKS, THE ASSESSEE HAS NOT BEEN ABLE T O ESTABLISH ANY REASONABLE CAUSE FOR THE DEFAULT. IN THE CIRCUMSTA NCES, THE PENALTY U/S.271E WAS RIGHTLY LEVIED IN THE ASSESSEES CASE. RELIEF CLAIMED IN APPEAL. THE ORDER OF THE CIT(A) ON THE ABOVE ISSUE BE SET A SIDE AND THAT OF THE ASSESSING OFFICER BE RESTORED. 2. WE HAVE HEARD BOTH THE SIDES. LOOKING TO THE FA CTS AND CIRCUMSTANCES OF THE CASE, WE FIND THAT THE MATTER IS COVERED BY THE ORDER OF ITAT BENCH D AHMEDABAD IN ASSESSEES OWN CASE PASSED FOR A.Y. 2006-07 BEARING ITA NO.1270/AHD/2010, DATED 22/02/2 011, WHEREIN VIDE PARAGRAPH NO.6 IT WAS HELD AS UNDER:- 6. WE FIND IN THE INSTANCE CASE THAT THE CONTENTI ON OF THE ASSESSEE THAT THE STAFF OF ASSESSEE-BANK WAS ACTING ON A BO NA FIDE BELIEF THAT NO OFFENCE HAS BEEN MADE OUT WHILE MAKING THE PAYMENTS OF VARIOUS DEPOSITS IN CASH. DURING THE COURSE OF PRO CEEDINGS BEFORE THE LOWER AUTHORITIES, IT WAS CONSISTENTLY CONTENDE D THAT THE IDENTITY OF THE DEPOSITORS ARE NOT IN DOUBT AND THE TRANSACTIONS ARE GENUINE ONE. IT ALSO NOT THE CASE OF THE REVENUE T HE DEPOSITORS WERE BENAMI. ACCORDINGLY, IT CAN BE SAFELY SAID TH AT THE BONA FIDE BELIEF COUPLED WITH GENUINENESS OF THE TRANSACTIONS CONSTITUTE A REASONABLE CAUSE AS PROVIDED U/S.273B OF THE ACT FO R REPAYMENT OF FDRS IN CASH BY BANK. AT THE SAME TIME, WE ARE OF THE VIEW THAT ORDINARY A PLEA AS TO THE IGNORANCE OF LAW CANNOT S UPPORT THE BREACH OF A STATUTORY PROVISION, BUT THE FACT OF SU CH AN INNOCENT MISTAKE DUE TO IGNORANCE OF THE RELEVANT PROVISIONS OF LAW COUPLED WITH THE FACT THAT THE TRANSACTIONS IN QUESTION WER E GENUINE AND BONA FIDE TRANSACTIONS AND WERE UNDERTAKEN DURING T HE REGULAR COURSE OF THE BUSINESS, WILL CONSTITUTE A REASONABL E CAUSE. IN VIEW ITA NO.662/AHD/ 2010 ITO VS. ABHYUDAYA CO-OP.BANK LTD. ASST.YEAR 2005-06 - 3 - OF THE ABOVE DISCUSSION, WE CONFIRM THE ORDER OF CI T(A) DELETING THE PENALTY AND THIS ISSUE OF REVENUES APPEAL IS D ISMISSED. 3. IN THE RESULT, IN TERMS OF SEC.273B OF I.T.A CT WE HEREBY PRONOUNCE THAT UNDER THE FACTS AND CIRCUMSTANCES OF THE CASE FOR THE YEAR UNDER CONSIDERATION, AS WELL, THERE WAS A REASONABLE CAUS E FOR THE SAID FAILURE FOR WHICH THE IMPUGNED PENALTY WAS IMPOSED. THEREF ORE, RESPECTFULLY FOLLOWING THE AFORESAID ORDER OF THE TRIBUNAL, WHER EIN, AS WELL, ON THE GROUND OF REASONABLE CAUSE THE PENALTY ON IDENTICAL FACTS HAD ALREADY BEEN DELETED, ON THE SAME LINES THE GROUND RAISED B Y THE REVENUE IS HEREBY DISMISSED. 4. AS A RESULT, REVENUES APPEAL STANDS DISMISSED. SD/- SD/- ( ! '# ) ( ) $% ( ANIL CHATURVEDI ) ( MUKU L KR. SHRAWAT ) ACCOUNTANT MEMBER JUDICIAL MEMBER AHMEDABAD; DATED 24/ 8 /2012 6..!, .!../ T.C. NAIR, SR. PS $5 1 .7 8$7) $5 1 .7 8$7) $5 1 .7 8$7) $5 1 .7 8$7)/ COPY OF THE ORDER FORWARDED TO : 1. *- / THE APPELLANT 2. ./*- / THE RESPONDENT. 3. 9 / CONCERNED CIT 4. 9() / THE CIT(A)-V, BARODA 5. 7<= .! , , / DR, ITAT, AHMEDABAD 6. = >2 / GUARD FILE. $5! $5! $5! $5! / BY ORDER, /7 . //TRUE COPY// ? ?? ?/ // / + + + + ( DY./ASSTT.REGISTRAR) , , , , / ITAT, AHMEDABAD