M/S DISTRICT CO-OPERATIVE BANK LTD.,BARABANKI V. .JOINT DIRECTOR OF INCOME TAX (I& CI ), LUCKNOW

ITA 682/LKW/2018

AI Insights

The case involves an appeal by M/s District Cooperative Bank Ltd., Barabanki against a penalty order imposed by the Joint Director of Income Tax (Intelligence & Criminal Investigation), Lucknow, under section 271FA of the Income Tax Act for the assessment year 2017-18. The penalty of Rs. 47,000 was contested on several grounds, including jurisdictional authority and the existence of reasonable cause for late filing of returns. The tribunal noted that the appropriate forum for such a penalty appeal is the CIT(A), not the Income Tax Appellate Tribunal (ITAT), and thus allowed the withdrawal of the appeal to enable the assessee to approach the correct authority.

• Counselvise Citation: [2024] 140 COUNSELVISE.COM (IT) 43559 (ITAT-LUCKNOW)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 26-12-2024
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: A
• Assessment Year: 2017-2018
• Laws Referred To: Income Tax Act
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: SANJEEV KRISHNA SHARMA
• Keywords: Reasonable cause
• Section: 246A

Judgement Text

"I.T.A. No.682/Lkw/2018 Assessment Year:2017-18 1 IN THE INCOME TAX APPELLATE TRIBUNAL LUCKNOW BENCH ‘A’, LUCKNOW BEFORE SHRI ANADEE NATH MISSHRA, ACCOUNTANT MEMBER AND SHRI SUBHASH MALGURIA, JUDICIAL MEMBER I.T.A. No.682/Lkw/2018 Assessment Year:2017-18 M/s District Cooperative Bank Ltd., Barabanki. PAN:AAAAD2777N Vs. Jt. Director of Income Tax (I&CI), Lucknow. (Appellant) (Respondent) O R D E R PER SUBHASH MALGURIA, J.M. This appeal vide I.T.A.No.682/Lkw/2018 has been filed by the assessee for assessment year 2017-18 against the impugned penalty order dated 17/09/2018 passed by learned Joint Director of Income Tax (Intelligence & Criminal Investigation), Lucknow. In this appeal the assessee has raised the following grounds: “1. The Learned Joint Director of Income Tax of Intelligence & Criminal Investigation, Lucknow [hereinafter referred to as the Ld. JDIT (I&Cl)] erred on facts and in law in imposing a penalty of Rs.47,000/- on the appellant without appreciating the law Appellant by None Respondent by Shri Sanjeev Krishna Sharma, Addl. CIT (D.R.) Date of hearing 17/12/2024 Date of Pronouncement 26/12/2024 I.T.A. No.682/Lkw/2018 Assessment Year:2017-18 2 that he is not the Prescribed Income Tax Authority entitled for levy of penalty u/s 271 FA of the Act. 2. On the facts stated in the Statement of facts, the penalty order passed u/s 271 FA of the Act by Ld. JDIT (I & Cl) is null and void as it has been passed without jurisdiction and hence the penalty order so passed may kindly be quashed. 3. The Ld. JDIT (I & Cl) erred on facts and in law in levy of penalty of Rs.47,000/-without appreciating the fact that there was sufficient reasonable cause beyond the control of the appellant behind not filing the return on due date. 4. The Ld. JDIT (I & Cl ) erred on facts and in law in not appreciating the law that for overlapping period, no penalty u/s 271 FA could be levied. 5. The Ld. DIT (I & Cl) erred on facts and in law in not providing the appellant reasonable and sufficient opportunity to have its say and to make compliances of the reasons being relied upon by him in making addition in the hands of the appellant.” 2. The present appeal has been filed before the Income Tax Appellate Tribunal against the penalty order dated 17/09/2018 passed u/s 271FA of the I. T. Act by the Joint Director of Income Tax (Intelligence & Criminal Investigation), Lucknow. The levy of penalty u/s 271FA of the I. T. Act falls under the scope of Chapter XXI of the I. T. Act and being aggrieved by any such penalty order passed u/s 271FA of the I. T. Act, the assessee should have filed its appeal before the office of the CIT(A) as provided under Clause (q) to sub-section (1) of Section 246A of the I. T. Act, which provides that an appeal against order imposing penalty under Chapter-XXI would lie with CIT(A). It has also been noticed that the assessee has submitted an application, received by the Registry of this office on 16/12/2024, in which request has been made by the assessee for permission to withdraw the present appeal. Learned Sr. Departmental Representative has expressed no objection. Accordingly, we permit the assessee to withdraw the appeal and I.T.A. No.682/Lkw/2018 Assessment Year:2017-18 3 present the same before learned CIT(A). The learned CIT(A) is also directed to admit the appeal and condone the delay, if any, which has occurred on account of filing of the appeal before the Income Tax Appellate Tribunal. 3. In the result, the appeal of the assessee is dismissed as withdrawn. (Order pronounced in the open court on 26/12/2024) Sd/. Sd/. (ANADEE NATH MISSHRA) (SUBHASH MALGURIA) Accountant Member Judicial Member Dated:26/12/2024 *Singh Copy of the order forwarded to : 1. The Appellant 2. The Respondent. 3. Concerned CIT 4. D.R., I.T.A.T., 5. CIT(A) Assistant Registrar "