PERAMANGALAM SERVICE CO-OPERATIVE BANK LTD,MUVATTUPUZHA. V. ITO, CORPORATE WARD-1(1), KOCHI

ITA 592/COCH/2025

AI Insights

The case involves Peramanglam Services Co-operative Bank Ltd, which appealed against a penalty imposed by the Income Tax Department for non-compliance with notices under section 142(1) of the Income-tax Act, 1961, during the COVID-19 pandemic. The penalty was initially set at Rs. 40,000 by the Assessment Unit, citing non-compliance with multiple notices issued during the pandemic period. The assessee argued that the non-compliance was due to the pandemic, referencing a Supreme Court ruling that extended all limitation periods until February 28, 2022. The Tribunal, considering the exceptional circumstances of the pandemic and the Supreme Court's ruling, decided in favor of the assessee, allowing the appeal and directing the deletion of the penalty.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 785398 (ITAT-COCHIN)
• Duration Of Justice: 2 month(s) 5 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 28-10-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB
• Assessment Year: 2017-2018
• Appeal Filed On: 22-08-2025
• Other Referred Cases: Suo Moto W.P.(c) No. 3 of 2020
• Laws Referred To: Income-tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: LEENA LAL; SNR
• Assessee Lawyers: NARAYAN V. P
• Keywords: Set aside; Period of limitation; Time period of passing order
• Section: 148; 142(1)

Judgement Text

"IN THE INCOME TAX APPELLATE TRIBUNAL COCHIN BENCH BEFORE SHRI INTURI RAMA RAO, ACCOUNTANT MEMBER AND SHRI ANIKESH BANERJEE, JUDICIAL MEMBER I.T.A No.592/COCH/2022 (Assessment Year: 2017-18) Peramanglam Services Co- operative Bank Ltd Kaloor P.O. Kollorkad, Muvattupuzha PAN: AACAT5139J vs ITO, Corporate Ward-1(1), Kochi CRB, I S Press Road, Kochi. APPELLANT RESPONDENT Assessee by : Shri Narayan V. P Respondent by : Smt. Leena Lal, Snr AR Date of hearing : 27/10/2025 Date of pronouncement : 28/10/2025 O R D E R Per Anikesh Banerjee, JM: The Instant appeal of the assessee was filed against the order of the Learned National Faceless Appeal Centre, Delhi [for brevity, ‘ Ld.CIT(A)’] passed under section 250 of the Income-tax Act, 1961 (in short, the Act’) for Assessment Year 2017-18, date of order 20/06/2025. The impugned order emanated from the order of the Assessment Unit, Income Tax Department (in short, ‘Ld.AO’) passed under section 272A(1)(d) of the Act, date of order 12/09/2022. Printed from counselvise.com 2 2 2. Brief facts of the case are that theassessee is a primary agricultural credit society registered under the Kerala Cooperative Societies Act, 1969. The society functions under regulatory framework let down by the act asper the cooperative department of Government of Kerala. The assessee’s case was reopened under section 148 of the Act on 30/03/2021 and the notices under section 142(1) of the Act were issue in several occasions. But the assessee did not comply the same notices. The assessment order was passed exparte under section 144r.w.s 147 of the Act on dated 22/03/2022 by confirming the addition. The appeal was filed before the Ld. CIT(A) and the quantum appeal was set asideLd. AO for further adjudication by the order dated 20/06/2025. 3. The Ld. AO initiated the penalty proceeding under section 272A(1)(d) of the Act and imposed penalty for noncompliance of notices U/s 142(1) of the Act on dated 14/09/2021, 24/11/2021, 09/12/2021 & 18/02/2022total amount to Rs. 40,000/-. The assessee stated that the all the notices are issued during the COVID-19 Pandemic. There is sufficient reason for noncompliance of notices during the assessment proceeding. In argument the Ld. AR stated that the issue is covered by the ruling of the Hon’ble Supreme Court by its order in Suo Moto W.P.(c) No. 3 of 2020 dated 10/01/2022 extended all limitation periods until 28/02/2022. 4. The Ld. DR argued stands in favour of the orders of revenue authorities. 5. We have considered the submissions of both the parties and perused the material available on record. It is an admitted fact that all the notices under section 142(1) of the Act were issued during the period affected by the COVID-19 pandemic, when the Hon’ble Supreme Court, by its order in Suo Moto W.P. (C) No. 3 of 2020 dated 10.01.2022, had extended all limitation periods up to 28.02.2022. Considering the exceptional circumstances prevailing Printed from counselvise.com 3 3 during that period, the non-compliance of the assessee to the said notices cannot be regarded as wilful or deliberate.Further, on perusal of the record, we find that the assessment order related to the impugned penalty has also been set aside. Accordingly, the assessment proceedings are presently pending for fresh adjudication before the Ld. CIT(A).Accordingly, the penalty levied under section 272A(1)(d) of the Act is not sustainable in the eyes of law.Hence, we direct the Ld. AO to delete the penalty amount to Rs. 40,000/-. The appeal of the assessee is allowed. 6. In the result, the appeal filed by the assessee bearing ITA No. 592/COCH/2025is allowed. Order pronounced in the open court on 28th October 2025 Sd/- (INTURI RAMA RAO) Sd/- (ANIKESH BANERJEE) ACCOUNTANT MEMBER JUDICIAL MEMBER Mumbai,Ǒदनांक/Dated: 28/10/2025 Pavanan Copy of the Order forwarded to: 1. अपीलाथȸ/The Appellant , 2. ĤǓतवादȣ/ The Respondent. 3. आयकरआयुÈत CIT 4. ͪवभागीयĤǓतǓनͬध, आय.अपी.अͬध., मुंबई/DR, ITAT, JODHPUR 5. गाड[फाइल/Guard file. BY ORDER //True Copy// (Asstt. Registrar), ITAT, Cochin Printed from counselvise.com "