KUTTAMASSERY SERVICE CO-OPERATIVE BANK LIMITED NO 766,ERNAKULAM V. ITO, WARD 2, ALUVA, ALUVA

ITA 413/COCH/2024

AI Insights

The case involves Kuttamassery Service Co-op. Bank Ltd., the appellant, contesting a penalty of Rs. 1,16,887 imposed by the Income Tax Officer, Ward-2, Aluva, under section 271B of the Income Tax Act, 1961, for not furnishing audited financial statements within the due date as specified under section 44AB. The penalty was confirmed by the National Faceless Appeal Centre, Delhi (CIT(A)). The appellant argued that the delay was due to the late audit under the Kerala Cooperative Societies Act, which was accepted as a reasonable cause by the Tribunal, referencing a similar case by the Kerala High Court.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 23374 (ITAT-COCHIN)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 11-02-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB
• Assessment Year: 2017-2018
• Other Referred Cases: Chavakkad Service Co-op. Bank Ltd. [2024] 169 taxmann.com 45 (Kerala)
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: LEENA LAL
• Assessee Lawyers: AMALJITH P.J.
• Keywords: Reasonable cause
• Section: 44AB; 271B

Judgement Text

" IN THE INCOME TAX APPELLATE TRIBUNAL COCHIN BENCH BEFORE SHRI INTURI RAMA RAO, AM AND SHRI PRAKASH CHAND YADAV, JM ITA No. 413/Coch/2024 Assessment Year: 2017-18 Kuttamassery Service Co-op. Bank Ltd. .......... Appellant Thottumugham P.O., Aluva Ernakulam 683105 [PAN: AAAAK6068P] vs. The Income Tax Officer, Ward - 2 .......... Respondent Aluva Range Kap Commerical Complex 2nd Floor, R.S. Road, Aluva Ernakulam 683101 Appellant by: Shri Amaljith P.J., CA Respondent by: Smt. Leena Lal, Sr. D.R. Date of Hearing: 09.01.2025 Date of Pronouncement: 11.02.2025 O R D E R Per: Inturi Rama Rao, AM This appeal filed by the assessee is directed against the order of the National Faceless Appeal Centre, Delhi [CIT(A)] dated 13.03.2024 for Assessment Year (AY) 2017-18. 2. The only issue raised by the assessee is that the learned CIT(A) erred in confirming the penalty levied by the Income Tax Officer, Ward- 2, Aluva (hereafter called “the AO”) u/s 271B of the Income Tax Act, 1961 (the Act) amounting to Rs.1,16,887/-. 2 ITA No. 413/Coch/2024 Kuttamassery Service Co-op. Bank Ltd. 3. In the present case, the audited financial statements were not furnished by the assessee within the due date as specified u/s 44AB of the Act. Therefore, the AO levied penalty u/s 271B of the Act amounting to Rs. 1,16,887/- . 4. Being aggrieved, an appeal was filed before the CIT(A), who vide the impugned order confirmed the action of the AO. 5. Being aggrieved by the order of the learned CIT(A) the assessee is in appeal before us. 6. The learned A.R. before us submitted that the delay in furnishing the tax audit report had occurred on account of the delay in getting the accounts audited and audit certificate under the Kerala Cooperative Societies Act. Thus, it was pleaded by the learned counsel for the assessee that there was sufficient cause for the delay in getting the account audited and consequently furnishing the audit report belatedly. As such the learned A.R. prayed for wavier of the penalty under the provisions of section 271B of the Act. 7. On the other hand, the learned Sr. DR vehemently supported the orders of the authorities below. 8. We have heard the rival contentions of both the parties and perused the materials available on record. At the outset, we note that the Hon'ble Jurisdictional High Court in the case of Chavakkad Service Co-op. Bank Ltd. [2024] 169 taxmann.com 45 (Kerala) has observed as under: - “Where assessee co-operative societies did not file audit report as mandated under section 44AB within time limit specified thereunder, however, audit reports were made 3 ITA No. 413/Coch/2024 Kuttamassery Service Co-op. Bank Ltd. available before Assessing Authority at time of finalization of assessments, since delay in obtaining audit reports from statutory auditors under Kerala Co-operative Societies Act and Rules could be seen as a reasonable cause for delayed submission of audit reports, no penalty under section 271B was to be imposed on assessee.” 9. The facts of the case on hand are identical as discussed above. Thus, respectfully following the same, we direct the AO to delete the penalty levied u/s. 271B of the Act. 10. In the result, appeal filed by the assessee is allowed. Order pronounced in the open court on 11th February, 2025. Sd/- Sd/- (PRAKASH CHAND YADAV) JUDICIAL MEMBER (INTURI RAMA RAO) ACCOUNTANT MEMBER Cochin, Dated: 11th February, 2025 n.p. Copy to: 1. The Appellant 2. The Respondent 3. The Pr. CIT concerned 4. The Sr. DR, ITAT, Cochin 5. Guard File By Order Assistant Registrar ITAT, Cochin "