Denial of Immunity from Penalty u/s 270A to Co-operative Bank: ITAT Remands Matter to AO [Read Order]
It was observed that both the AO and CIT(A) failed to examine the immunity request, prompting the tribunal to remand the case to the AO for reconsideration while keeping all contentions open
![Denial of Immunity from Penalty u/s 270A to Co-operative Bank: ITAT Remands Matter to AO [Read Order]](https://www.taxscan.in/wp-content/uploads/2025/03/ITAT-Penalty-under-section-270A-section-270A-of-income-tax-act-TAXSCAN.jpg "Denial of Immunity from Penalty u/s 270A to Co-operative Bank: ITAT Remands Matter to AO [Read Order]")
The Cochin Bench of Income Tax Appellate Tribunal ( ITAT ) restored the matter to the Assessing Officer (AO) after noting that the denial of immunity from penalty under Section 270A of Income Tax Act,1961 to Co-operative Bank was not properly considered. Malanadu Co-op. Agriculture and Rural Development Bank Ltd,appellant-assessee,a co-operative society registered under the...
The Cochin Bench of Income Tax Appellate Tribunal ( ITAT ) restored the matter to the Assessing Officer (AO) after noting that the denial of immunity from penalty under Section 270A of Income Tax Act,1961 to Co-operative Bank was not properly considered.
Malanadu Co-op. Agriculture and Rural Development Bank Ltd,appellant-assessee,a co-operative society registered under the Kerala Co-Operative Societies Act, 1969, filed its income tax return for AY 2020-21 on February 14, 2021, declaring nil income after claiming a deduction under Section 80P of the Act. The AO completed the assessment under Section 143(3) on September 22, 2022, and initiated penalty proceedings under Section 270A.
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The assessee applied for immunity from penalty, but it was denied for not submitting Form 28 within the required time. As a result, the AO imposed a penalty of Rs. 13,92,924 under Section 270A through an order dated March 25, 2023.
Read More: Validity of Penalty Proceedings u/s 270A: ITAT Finds CIT(A)’s Decision Premature
The assessee appealed to the Commissioner of Income Tax(Appeals)[CIT(A)], who upheld the penalty without considering the immunity claim. The assessee then appealed before the tribunal.
The two member bench comprising Prakash Chand Yadav (Judicial Member) and Inturi Rama Rao (Accountant Member) reviewed the case and noted that neither the AO nor the CIT(A) considered the assessee's immunity claim before imposing and upholding the penalty. It restored the matter to the AO for a fresh review of the immunity application, keeping all contentions open for consideration.
In short,the appeal filed by the assessee was partly allowed.
To Read the full text of the Order CLICK HERE
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