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2021 (10) TMI 1417 - AT - Income TaxPenalty levied u/s 271FA - non-filing of Annual Information Return as required u/r 114E of the I.T. Rules - Proof of reasonable cause in terms of sec.273B assessee is a co-operative bank - HELD THAT:- As decided in case of The Mandya Dist. Co-op. Central Bank Ltd. [2020 (3) TMI 1455 - ITAT BANGALORE] 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, 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.
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