आयकर अपीलीय अिधकरण, ‘बी’ (cid:1)यायपीठ, चे(cid:9)ई।

IN THE INCOME TAX APPELLATE TRIBUNAL ‘B’ BENCH: CHENNAI (cid:1)ी एबी टी. वक(cid:10), (cid:11)ाियक सद(cid:17) एव ं

(cid:1)ी जगदीश, लेखा सद(cid:12) के सम(cid:21)

BEFORE SHRI ABY T. VARKEY, JUDICIAL MEMBER AND SHRI JAGADISH, ACCOUNTANT MEMBER आयकर अपील सं./ITA No.3256/Chny/2024 िनधा(cid:14)रणवष/(cid:14) Assessment Year: 2018-19 Perurchettipalayam PACCS, v. The ITO, 177, Arumugagoundanur Perur NCW-4(1), Chettipalayam, Coimbatore.

Coimbatore-641 010.

[PAN: AABAP 3228 M (अपीलाथ(cid:22)/Appellant) ((cid:23)(cid:24)यथ(cid:22)/Respondent)

अपीलाथ(cid:22) क(cid:26) ओर स / े Appellant by : Ms.S. Mathangi, Advocate (by virtual)

(cid:23)(cid:24)यथ(cid:22) क(cid:26) ओर स े /Respondent by : Ms.Gouthami Manivasagam, JCIT सुनवाईक(cid:26)तारीख/Date of Hearing : 10.03.2025 घोषणाक(cid:26)तारीख /Date of Pronouncement : 29.04.2025 आदशे / O R D E R PER ABY T. VARKEY, JM:

This is an appeal preferred by the assessee against the order of the Learned Commissioner of Income Tax (Appeals)/NFAC, (hereinafter referred to as “the Ld.CIT(A)”), Delhi, dated 18.11.2024 for the Assessment Year (hereinafter referred to as "AY”) 2018-19 confirming the penalty levied by the AO u/s.271B of the Income Tax Act, 1961 (hereinafter referred to as "the Act”) by levying an amount of Rs.1.50 lakhs as penalty.

2. The brief facts are that the assessee is noted to be a Primary Agricultural Co-operative Credit Society, governed by the provisions of the Tamil Nadu Co-operative Societies Act, 1983; and objects of the Society is, inter-alia, noted to provide credit facility to the members of the society; and all the Co-operative Societies like assessee in the state of Tamil Nadu are subject to audit as provided under the Tamil Nadu Cooperative Societies Act, 1983; and the Auditors are appointed by the Director of Cooperative Audit/Registrar and not by the assessee Society. The assessee society is noted to have filed its return of income (RoI) on 13.02.2019 for AY 2018-19 which return was selected for scrutiny and the AO passed the assessment order on 09.04.2021 by assessing income of Rs.32,26,418/-. The AO noticing that the assessee didn’t file the Tax Audit Report (TAR) in Form No.3CD u/s.44AB of the Act before the due date for filing the ITR i.e. 15.10.2018, the AO issued notice to the assessee ‘as to why’ penalty u/s.271B of the Act should not be levied against the assessee for belated filing of the Audit Report on 13.02.2019. Pursuant to it, the assessee is noted to have brought to the notice of the AO that the belated filing of TAR was not deliberate and since, it is registered under the Tamil Nadu Cooperative Societies Act, 1983, statutory audit needs to be carried out by the Tamil Nadu State Government and thereafter only assessee could file the TAR in Form No.3CD. And accordingly, when the government audit was completed on

08.01.2019, the assessee got the TAR prepared on 06.02.2019 and filed its on 13.02.2019. It was pointed out to the AO that the TAR had been filed before the assessment order was passed on 09.04.2021. Therefore, it was pleaded that no penalty be levied on the assessee. However, the AO didn’t accept the explanation of the assessee and levied penalty of Rs.1.50 lakhs u/s.271B of the Act. On appeal, the Ld.CIT(A) confirmed the action of the AO. Aggrieved by the aforesaid action of the Ld.CIT(A), the assessee is before us.

3. We have heard both the parties and perused the material available on record. We note that the assessee is a co-operative society registered under the Tamil Nadu Co-operative Societies Act, 1983 and was subject to audit as per the Tamil Nadu Cooperative Societies Act, 1983 by the Auditor who are appointed by the Director of the Co-operative Audit or the Registrar of the Societies. The government auditor is noted to have conducted the statutory audit of the accounts of the assessee and given the report on 08.01.2019 and thereafter, the assessee’s auditor has completed the TAR on 06.02.2019 and filed