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TMI Blog2020 (3) TMI 1455X X X X Extracts X X X X X X X X Extracts X X X X ..... riginal provisions of Rule 114E of Income tax Rules did not include co-operative bank and it was inserted only in the amended provisions of Rule 114E, which came into effect from 1.4.2016. Accordingly, in our view, there is merit in the submission of the ld A.R that there existed an ambiguity as to whether the co- operative banks are required to comply with the provisions of Rule 114E of the Act, meaning thereby, the bonafide belief of the assessee shall constitute reasonable cause in terms of sec.273B of the Act for the failure in furnishing the AIR for the year under consideration. In this view of the matter, the impugned penalty is liable to be deleted. Accordingly we set aside the order passed by Ld CIT(A) and direct the AO to dele ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sec.285BA(2), the AIR has to be filed electronically. 4. Hence the DIT did not recognise the manual return. Since the DIT held that the assessee has not filed AIR, he initiated penalty proceedings u/s 271FA of the Act. Since there was no response from the assessee, he levied a penalty of Rs.3,97,100/-, computed @ Rs.100/- per day from 01-09-2014 to the date on which the time specified in the notice issued u/s 285BA(5) of the Act expired (i.e, till 5. The assessee challenged the penalty levied u/s 271FA of the Act by filing appeal before Ld CIT(A), but the same was dismissed. Hence the assessee has filed this appeal before us. 6. The Ld A.R submitted that there was reasonable cause for the assessee in not filing the AIR. He submitt ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ning of provisions of sec.273B of the Act. Accordingly he prayed that the impugned penalty be deleted. 7. The Ld D.R, however, submitted that the assessee shall fall under the category of banking company and hence the assessee has complied with the notice issued u/s 285BA(5) of the Act. He submitted that the amendment made in Rule 114E by inserting co-operative bank is only clarificatory in nature. He submitted that all the assessees are covered by sec.285BA(1) of the Act and hence there exists no ambiguity as contended by Ld A.R. 8. In the rejoinder, the Ld A.R submitted that the expressions Banking company and co-operative banks have specific meaning under the Banking Regulations Act. 9. We heard rival contentions and perused ..... X X X X Extracts X X X X X X X X Extracts X X X X
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