Ramgarhia Cooperative Bank Limited vs Assistant Commissioner of Income-tax Circle – 63

Parties Involved

Facts Summary

The assessee, Ramgarhia Cooperative Bank Limited, filed its return of income on 29.09.2013 declaring total income of Rs.1,76,68,630/-. The case was selected for scrutiny assessment under CASS. Notice u/s. 143 (2) along with notice u/s. 142 (1) of the Act was issued on 01.09.2014 and duly served upon the assessee. Subsequently a notice u/s.142 (1) along with a detailed questionnaire was issued on 09.04.2013. The assessing officer has passed the assessment order by computing the income of the assessee as under;- The assessee has filed the appeal before the Ld CIT(A) who has confirmed the disallowance of Rs 1,72,27,362/- out of total disallowance of Rs 6,36,02,481/- made by AO on account of non deduction of the tax on interest paid on various depositions invoking the provisions of section 40(a)(ia) of the Act. Further the CIT(A) has also confirmed the addition of Rs 52,20,914/- on account of interest on ‘Non Performing Asset’ and also confirmed the disallowance of an amount of Rs.192041/- on account of amortization of premium on government securities. Aggrieved by the order of the Ld CIT(A) the assessee has preferred an appeal before the Hon’ble ITAT who vide his order dated 15-09-2023 disallowance of Rs.22,18,816/- has confirmed and rest was deleted. After the receipt of the order of the Hon’ble ITAT Delhi, the AO started the penalty proceedings u/s 271(1) of the Act and Rs.689635/- penalty was imposed by order dated 27-03-2023. Aggrieved by the order of the Assessing officer t…

Legal Issues

• 1. Whether the penalty order was passed without proper application of mind.
• 2. Whether the penalty order was passed on the basis of a valid notice.

Judgment Outcome

Decided in favour of Assessee.

Precedents Relied Upon

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