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TMI Blog2021 (10) TMI 1417X X X X Extracts X X X X X X X X Extracts X X X X ..... in the amended provisions of Rule 114E, which came into effect from 1.4.2016. Accordingly, 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 delete the impugned penalty levied u/s 271FA - Decided in favour of assessee. - Shri N.V. Vasudevan, Vice President And Shri B ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ause in terms of section 273B of the Act. In support of his submissions, he placed his reliance on the order dated 13.3.2020 in the case of The Mandya District Co-op. Central Bank Ltd. Vs. DIT (I CI) in ITA No.447/Bang/2019 dated 13.3.2020. Accordingly, he prayed for deletion of penalty levied u/s 271FA of the Act in all the 3 years under consideration. 3. The Ld. D.R., on the contrary, supported the orders passed by Ld. CIT(A). 4. We heard the rival contentions and perused the record. We notice that an identical issue has been considered by this bench in the case of The Mandya Dist. Co-op. Central Bank Ltd. (supra). For the sake of convenience, we extract below the relevant observations made by the Tribunal in above said case: 5 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... However, the Ld CIT(A) has taken the view that the amendment made with effect from 1.4.2016 is clarificatory in nature and hence the same would apply to the year under consideration also. The Ld A.R submitted that the ambiguity demonstrated by the assessee constitutes a reasonable cause within the meaning 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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