IN THE INCOME TAX APPELLATE TRIBUNAL COCHIN BENCH BEFORE SHRI INTURI RAMA RAO, AM AND SHRI KESHAV DUBEY, JM ITA Nos. 827 to 831/Coch/2024 Assessment Years: 2012-13 to 2016-17 Pattom Service Co-op. Bank Ltd. .......... Appellant Medical College, Kannanmoola Thriuvananthapuram 695011 [PAN: AAEAP02030Q]

vs.

DCIT, Central Circle .......... Respondent Thiruvananthapuram Appellant by: Shri K.P. Pradeep, Advocate Respondent by: Smt. Leena Lal, Sr. D.R. Date of Hearing: 19.02.2025 Date of Pronouncement: 18.03.2025

O R D E R

Per: Inturi Rama Rao, AM These appeals filed by the assessee are directed against the orders of the National Faceless Appeal Centre, Delhi [CIT(A)], dated

24.05.2022 for Assessment Years (AYs) 2012-13 to 2016-17.

2. Since identical issues are involved in these appeals, they are heard together and disposed of vide this common order. For the sake of convenience and clarity the facts relevant to the appeal bearing ITA No. 831/Coch/2024 for AY 2016-17 are stated herein.

3. Brief facts of the case are that the appellant is a co-operative society engaged in the business of providing credit facilities to its members. The return of income for AY 2016-17 was filed on 28.03.2018 declaring Nil income. The gross receipt of the appellant was Rs. 3,95,78,238/-. Therefore, the appellant society was liable to get the accounts audited and submit the report as prescribed under the provisions of section 44AB of the Income Tax Act, 1961 (the Act) within the due date for filing the return of income. However, the appellant society had submitted the report in Form 44AB ON 11.05.2018. Hence, the AO issued show cause notice under section 273 r.w.s. 271B of the Act, calling upon the appellant to show cause as to why penalty should not be levied u/s. 271B of the Act. In response to the show cause notice the appellant submitted that the delay in getting the books audited had occurred on account of the delay in completion of audit by the Co-operative Department of the State Government. However, the AO rejecting the above explanation had proceeded with levy of penalty of Rs. 1,50,000/-

u/s. 271B of the Act vide order dated 22.07.2021.

4. Being aggrieved, an appeal was filed before the CIT(A) contending that the delay in getting the accounts audited under the Co- operative Societies Act constitutes reasonable cause placing reliance on the decision of the coordinate bench of this Tribunal in the case of T.T. Kuruvilla vs. DCIT, ITA No. 504/Coch/2018 dated 22.01.2019. However, the CIT(A) confirmed the levy of penalty by holding that the mere fact that the audit of the appellant was conducted under the provisions of Co-operative Societies Act cannot be sufficient reason for non compliance by placing reliance on the decision of the Hon'ble Jurisdictional High Court in the case of Peroorkkada Service Co-

operative Bank Ltd. v. ITO [2020] 424 ITR 422.

5. Being aggrieved, the appellant is in appeal before us in the present appeal.

6. It is submitted that subsequent to the decision of Peroorkkada Service Co-op. Bank Ltd. (supra) the Hon'ble Jurisdictional High Court in the case of Chavakkad Service Co-op. Bank Ltd. v. ITO [2024] 169 taxmann.com 45 held that the delay in obtaining the audit report under the Kerala State Co-operative Societies Act constitute reasonable cause for delay in submission of audit report us 44AB of the Act and, therefore, no penalty was leviable.

7. On the other hand, the learned Sr. DR submits that no interference in the impugned order is called for.

8. We have heard the rival contentions of both the parties and perused the material available on record. The solitary issue that arises for our determination is that having regard to the explanation given by the appellant, whether there was sufficient and reasonable cause for delay in submission of the audit report as prescribed u/s. 44AB of the Act. There is no dispute as to the fact of delayed submission of the prescribed report u/s. 44AB of the Act. In response to the show cause notice, th