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2020 (3) TMI 1455 - ITAT BANGALOREPenalty u/s 271FA - assessee has not furnished Annual Information Return (“AIR”) as required u/s 285BA(1) read with Rule 114E of Income tax Rules for the financial year 2013-14 - As per assessee there was reasonable cause for the assessee in not filing the AIR as the “co-operative banks” were specifically included with effect from 01-04-2016 and hence there was a view that the co-operative banks are not required to furnish AIR information - HELD THAT:- We notice that the original 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 delete the impugned penalty levied u/s 271FA of the Act for the year under consideration.Appeal of the assessee is allowed.
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