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2020 (3) TMI 1457 - ITAT BANGALOREPenalty u/s 271FA - not filing the AIR for the relevant AY - Default under the provisions of Section 285BA(2) of the Act r.w Rule 114E - assessee is a co-operative bank - main contention of AR before the Tribunal was that there is reasonable cause as mandated u/s 273B for not filing the AIR for the relevant AY - scope amendment to Rule 114E of IT Rules 1962 - HELD THAT:- We found under the provisions-of Section 273B of the Act where penalty need not be imposed, if there exists a-reasonable cause. We, on perusal of the facts of the case and the explanations and the grounds of appeal duly supported by the Paper Book and judicial decisions are of the view that-the amendment to Rule 114E of IT Rules has been effective from 1.4.2016 and,-further the AO has levied penalty for the F.Y. 2005-06 in the year-2017 and there was no provision under Rule 114E to include co-operative banks. We found the submissions of the learned Authorized Representative are realistic-considering small activity of the Bank and limited staff which cannot be-overlooked. Accordingly considering the principles of natural justice and the facts, we found there is a reasonable cause in not submitting the information as the assessee was under Bona Fide belief. Accordingly we set aside the order of CIT-(Appeals) and direct the Assessing Officer to delete the penalty and allow the-grounds of appeal of the assessee. In the result, the assessee appeal is allowed.
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