ITA Nos. 728 & 729/Coch/2023

Parties Involved

Facts Summary

The case involves twin appeals by the Revenue against the orders of the National Faceless Appeal Centre, Delhi, which had deleted penalties imposed on Mullankolly Service Co-op. Bank Ltd. for violations of sections 269SS and 269T of the Income Tax Act, 1961. The assessee, a primary agricultural credit society, had accepted deposits and provided loans in cash, which the Assessing Officer had penalized. The CIT(A) had deleted these penalties, finding that the assessee had acted in good faith and that there was reasonable cause for the cash transactions. The Revenue argued that the CIT(A) had erred in law and on facts. The Tribunal reviewed the case and found that the assessee had discharged its onus of proving reasonable cause for the cash transactions, and that the penalties were not applicable in this case.…

Legal Issues

• 1. Whether the CIT(A) rightly deleted the penalties imposed on the assessee for accepting and repaying loans in cash?

Judgment Outcome

Decided in favour of Partly Assessee / Partly Revenue.

Precedents Relied Upon

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