The Halol Urban Co. Op. Bank Ltd., Halol V. The Director Of Income Tax(I&CI), Ahmedabad

ITA 968/AHD/2019

• Counselvise Citation: [2021] 107 COUNSELVISE.COM (IT) 2894 (ITAT-AHMEDABAD)
• Duration Of Justice: 2 year(s) 4 month(s) 22 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 25-10-2021
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: B
• Assessment Year: 2017-2018
• Appeal Filed On: 03-06-2019
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: R R MAKWANA
• Section: 274

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL AHMEDABAD B BENCH (CONDUCTED THROUGH VIRTUAL COURT) BEFORE: SHRI RAJPAL YADAV, VICE PRESIDENT AND SHRI AMARJIT SINGH, ACCOUNTANT MEM BER THE HALOL URBAN CO-OP BANK LTD. RABARI FALIYA, PAVAGADH ROAD, HALOL-389350 PAN: AAAAT2873K (APPELLANT) VS THE DIRECTOR OF INCOME TAX ( I & CI), AAYAKAR BHAVAN, AHMEDABAD (RESPONDENT) REVENUE BY: SHRI R.R. MAKWANA, SR. D.R. ASSESSEE BY: SHRI SAMIR PARIKH, A.R . DATE OF HEARING : 08-10-2021 DATE OF PRONOUNCEMENT : 25-10-202 1 /ORDER PER : AMARJIT SINGH, ACCOUNTANT MEMBER:- THIS ASSESSEES APPEAL FOR A.Y. 2017-18, ARISES FRO M ORDER OF THE CIT(A), AHMEDABAD DATED 17-10-2017, IN PROCEEDINGS UNDER SECTION 271FA OF THE INCOME TAX ACT, 1961; IN SHORT THE A CT. ITA NO. 968/AHD/2019 ASSESSMENT YEAR 2017-18 I.T.A NO. 968/AHD/2019 A.Y. 2017-18 PAGE NO THE HALOL URBAN CO. OP. BANK LTD. VS. DIRECTOR OF I NCOME TAX ( I & CI) 2 2. THE SOLITARY GROUND OF APPEAL OF THE ASSESSEE IS DIRECTED AGAINST THE DECISION OF LD. CIT(A) IN LEVYING PENALTY OF R S. 73,000/- U/S. 271FOF THE ACT. 3. THE FACT IN BRIEF IS THAT LD. DIRECTOR OF INCOME TAX (I & CI) HAS PASSED ORDER U/S. 274 R.W.S. 271FA ON 17 TH OCTOBER, 2017 AND LEVIED PENALTY OF RS. 73,000/- U/S. 271FA FOR FAILING TO F ILE SFT-O14 FOR ASSESSMENT YEAR 2017-18 FOR WHICH THE LAST DATA WAS EXPIRED ON 31 ST JAN, 2016. THE LD. DIRECTOR OF INCOME TAX (I & CI) STATED THAT TWO NOTICES ON 11 TH APRIL, 2017 AND 1 ST JUNE, 2017 WERE ISSUED DIRECTING THE ASSESSEE TO FILE THE SFT-014 FAILING WHICH PENALTY WOULD BE LEVIABLE @ RS. 500 PER DAY FOR EACH DAY OF FAILURE COMMENCING ON 21 ST JUNE, 2017 SINCE THE ASSESSEE BANK HAD NOT RESPONDED TO THE NO TICES THEREFORE PENALTY WAS WORKED OUT AT RS. 73,000/-. 4. DURING THE COURSE OF APPELLATE PROCEEDINGS BEFOR E US, THE LD. COUNSEL HAS CONTENDED THAT ASSESSEE WAS UNAWARE OF NON-FILING OF SFT RETURN FOR F.Y. 2016-17 AND IT CAME TO ITS KNOWLEDG E ONLY AFTER A NOTICE RECEIVED BY IT FROM THE OFFICE OF THE DIRECTOR OF I NCOME TAX (I & CI) AHMEDABAD ON RECEIPT OF NOTICE, THE SFT RETURN 014 FOR F.Y. 2016-17 WAS FILED ELECTRONICALLY ON 28 TH MARCH, 2019. THE LD. COUNSEL HAS ALSO SUBMITTED THAT FROM JAN, 2017 PREMISES OF THE COMPA NY WAS UNDER RENOVATION THEREFORE NOTICES STATED IN THE PENALTY ORDER BY THE DIRECTOR OF INCOME TAX (I & CI) WERE NOT RECEIVED BY THE BAN K AND EVEN THE I.T.A NO. 968/AHD/2019 A.Y. 2017-18 PAGE NO THE HALOL URBAN CO. OP. BANK LTD. VS. DIRECTOR OF I NCOME TAX ( I & CI) 3 PENALTY ORDER LEVIED U/S. 271FA WAS ALSO NOT RECEIV ED BY THE BANK. ON THE OTHER HAND, LD. DEPARTMENTAL REPRESENTATIVE HAS SUPPORTED THE ORDER OF DIRECTOR OF INCOME TAX (I & CI) 5. HEARD BOTH THE SIDES AND PERUSED THE MATERIAL ON RECORD. THE ASSESSEE IS A CO-OPERATIVE BANK ENGAGED IN THE BUSI NESS OF BANKING. THE BANK IS REQUIRED TO FILE SFT RETURN (STATEMENT OF SPECIAL FINANCES TRANSACTION) U/S. 285BA OF THE ACT. IN VIEW OF T HE PROVISION OF SECTION 285BA OF THE ACT, THE ASSESSEE WAS REQUIRED TO FILE ANNUAL INFORMATION RETURN IN RELATION TO F.Y. 2016-17 ON OR BEFORE 31 ST JAN, 2016 AND THE ASSESSEE HAS FAILED TO COMPLY WITH THE SAID STATUTO RY REQUIREMENT. THEREFORE, THE DIRECTOR OF INCOME TAX (I & CI) ACCO RDINGLY LEVIED THE PENALTY U/S. 271FA FOR THE PERIOD OF DELAY AT RS. 7 9,000/-. THE PENALTY AMOUNT WAS WORKED OUT AS UNDER:- (A) RS.14,000/- FOR THE DELAY OF 140 DAYS FROM 01/02/2017 TO 20/06/2017@ RS. 100/- PER DAY; (B) RS. 59,000/- FOR THE DELAY OF 118 DAYS FROM 21/ 06/2017 TO 16/10/2017 @ RATE RS. 500/- PER DAY. THE AMOUNT OF PENALTY WAS COMPUTED AS PER THE PROV ISION OF SECTION 271FA. WE DO NOT FIND ANY MERIT IN THE PLEA OF TH E ASSESSEE STATING THAT IT WAS UNAWARE ABOUT THE FILING OF IMPUGNED ST ATEMENT. REGARDING THE CONTENTION OF THE ASSESSEE THAT IT HAD NOT RECE IVED THE NOTICES REPORTED IN THE PENALTY ORDER, IT IS OBSERVED THAT THE LD. DIT( I & IC) HAS ALSO NOT MENTIONED THE DATE OF SERVING THE TWO NOTI CES DATED 11-04- I.T.A NO. 968/AHD/2019 A.Y. 2017-18 PAGE NO THE HALOL URBAN CO. OP. BANK LTD. VS. DIRECTOR OF I NCOME TAX ( I & CI) 4 2017 & 1-6-2017 UPON THE ASSESSEE. LOOKING TO THE ABOVE FACTS AND CIRCUMSTANCES, WE HOLD THAT PENALTY OF RS. 25,800/- (258 DAYS X RS. 100 PER DAY) ON THE ASSESSEE WILL BE JUSTIFIED. ACCORD INGLY, THE APPEAL OF THE ASSESSEE IS PARTLY ALLOWED. 6. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS PAR TLY ALLOWED. ORDER PRONOUNCED IN THE OPEN COURT ON 25-10-2021 SD/ SD/- (RAJPAL YADAV) (AMARJIT SINGH) VICE PRESIDENT ACCOUNTANT MEMBER AHMEDABAD : DATED 25/10/2021 / COPY OF ORDER FORWARDED TO:- 1. ASSESSEE 2. REVENUE 3. CONCERNED CIT 4. CIT (A) 5. DR, ITAT, AHMEDABAD 6. GUARD FILE. BY ORDER/ , / ,