Kendrapara Credit Co-operative Society Ltd, Kendrapara V. ITO, Kendrapara Ward, Kendrapara

ITA 87/CTK/2021

• Counselvise Citation: [2022] 106 COUNSELVISE.COM (IT) 9787 (ITAT-CUTTACK)
• Duration Of Justice: 9 month(s) 19 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 06-06-2022
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB
• Assessment Year: 2016-2017
• Appeal Filed On: 17-08-2021
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Reasonable cause

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL, BEFORE AND ARUN KHODPIA, ACCOUNTANT MEMBER Kendrapara Credit Co Society Ltd., At: New Bus Stand, PO:Dist- Kendrapara PAN/GIR No. (Appellant Per Bench This is an appeal filed by the assessee against the or CIT(A), National Faceless Appeal Centre (NFAC), Delhi dated 19.3.2021 in Appeal No.CIT(A), Cuttack /10165/2019 17. 2. The appeal is barred by limitation by 87 days. The assessee has filed condonation petition, stating therein t account of COVID preparation of appeal with the legal consultant resulting in the delay of 86 IN THE INCOME TAX APPELLATE TRIBUNAL, CUTTACK BENCH, CUTTACK BEFORE S/SHRI GEORGE MATHAN, JUDICIAL AND ARUN KHODPIA, ACCOUNTANT MEMBER ITA No.87/CTK/2021 Assessment Year : 2016-17 Kendrapara Credit Co-operative Society Ltd., At: New Bus Stand, Kendrapara Vs. Income Tax Officer, Ward, Kendrapara No.AABAK 6558 P (Appellant) .. ( Respondent Assessee by : Shri C.Parida, AR Revenue by : Shri M.K.Gautam, Date of Hearing : 07/6 Date of Pronouncement : 07 / O R D E R This is an appeal filed by the assessee against the or A), National Faceless Appeal Centre (NFAC), Delhi dated 19.3.2021 in Appeal No.CIT(A), Cuttack /10165/2019-20 for the assessment year The appeal is barred by limitation by 87 days. The assessee has filed condonation petition, stating therein that due to shutdown and lockdown on account of COVID-19, it was not possible to have consultation and preparation of appeal with the legal consultant resulting in the delay of 86 Page1 | 4 IN THE INCOME TAX APPELLATE TRIBUNAL, JUDICIAL MEMBER AND ARUN KHODPIA, ACCOUNTANT MEMBER Income Tax Officer, Ward, Kendrapara Respondent) , AR CIT (DR) 6/ 2022 /6/2022 This is an appeal filed by the assessee against the order of the A), National Faceless Appeal Centre (NFAC), Delhi dated 19.3.2021 in for the assessment year 2016- The appeal is barred by limitation by 87 days. The assessee has filed hat due to shutdown and lockdown on 19, it was not possible to have consultation and preparation of appeal with the legal consultant resulting in the delay of 86 ITA No.87/CTK/2021 Assessment Year : 2016-17 Page2 | 4 days in filing of appeal. It is prayed that the delay in filing the appeal be condoned. Ld CIT DR did not object to the condonation of delay. 3. After going through the condonation petition, we find that the assessee had reasonable cause for not filing the appeal within the stipulated time. We, therefore, condone the delay 87 days in filing the appeal before the Tribunal and admit the appeal for hearing. 4. The sole ground taken in this appeal by the assessee is that the ld CIT(A), NFAC is not justified in confirming the penalty of Rs.1,50,000/- levied u/s.171B of the Act by the Assessing Officer. 5. Shri C.Parida, ld AR appeared for the assessee and Shri M.K.Gautam, ld CIT DR appeared for the revenue. 6. It was submitted by ld AR of the assessee that the audit report of the assessee was not submitted in time because same was received belatedly from the statutory auditors, who are to do the audit of the assessee as per the Co-operative Society Act. It was the submission that the delay in getting the report of audit done by the statutory auditors was beyond the control of the assessee. It was the prayer that the penalty as levied by the AO and confirmed by the ld CIT(A) may be deleted. 7. In reply, ld CIT DR vehemently supported the order of the AO and ld CIT(A). It was the submission that the assessee has been absolutely non- co-operative and there is no compliance before the AO nor the ld CIT(A) in ITA No.87/CTK/2021 Assessment Year : 2016-17 Page3 | 4 respect of the reasons for delayed audit accounts. It was the submission that if at all, the assessee has the reasonable cause, he could have filed before the AO and ld CIT(A). It was the submission that the penalty as levied by the AO and confirmed by the ld CIT(A) was liable to be upheld. 8. We have considered the rival submissions. A perusal of the facts as recorded by the AO shows that the delay in submitting the audit report was on account of delay in obtaining audit report from the statutory auditors. It is fairly admitted that the statutory auditors is appointed by the Registrar of Co-operative Societies and not by the assessee. This being so, we are of the view that the assessee has sufficient and reasonable cause for delay in obtaining the audit report. It is also an admitted fact that the audit report was available before the AO, when the assessment was done. This being so, we are of the view that it is a fit case for deletion of penalty u/s.271B of the Act. Consequently, the penalty levied by the AO U/S.271B of the Act and confirmed by the ld CIT(A) stands deleted. 9. In the result, appeal of the assessee is allowed Order dictated and pronounced in the open court on 7 /6/2022. Sd/ sd/- (Arun Khodpia) (George Mathan) ACCOUNTANT MEMBER JUDICIAL MEMBER Cuttack; Dated 7/06/2022 B.K.Parida, SPS (OS) ITA No.87/CTK/2021 Assessment Year : 2016-17 Page4 | 4 Copy of the Order forwarded to : By order Sr.Pvt.secretary ITAT, Cuttack 1. The Appellant : Kendrapara Credit Co-operative Society Ltd., At: New Bus Stand, PO:Dist- Kendrapara 2. The Respondent. Income Tax Officer, Ward, Kendrapara 3. The CIT(A)-,NFAC, Delhi 4. Pr.CIT-, Bhubaneswar 5. DR, ITAT, Cuttack 6. Guard file. //True Copy//