TMI Blog2019 (6) TMI 1088X X X X Extracts X X X X X X X X Extracts X X X X ..... t : Smt.A.S.Bindhu, Sr.DR ORDER PER GEORGE GEORGE K, JM : This appeal at the instance of the assessee is directed against the CIT(A) s order dated 30.01.2019. The relevant assessment year is 2011-2012. The order of the CIT(A) arises out of the order passed u/s 272A(2)(c) r.w.s. 274 of the Income-tax Act, 1961. 2. The brief facts of the case are as follow: 2.1 The assessee is a Co-operative Society registered under the Kerala Co-operative Societies Act, 1969. The assessee was served with notice u/s 133(6) of the Income-tax Act. The assessee was directed to furnish details of the persons who had deposited above ₹ 5 lakhs during the financial years 2010-2011, 2011-2012 2012-2013. The assessee was also directed to give details of the persons, who had received interest income exceeding ₹ 10,000 during the above mentioned financial years. The assessee did not furnish the details called for under the notice issued u/s 133(6). The Assessing Officer, therefore, initiated penalty proceedings u/s 272A(2)(c) r.w.s. 274 and imposed penalty of ₹ 31,000 @ ₹ 100 per day for the per ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of penalty was initiated on the date of notice issued by the Income Tax Officer (I CI), Kochi for the initiation of such proceedings. 6. The Appellant prays that the penalty of ₹ 30,500/- imposed by the Joint Director of Income Tax (I CI), Kochi in respect of non-furnishing of information called for under Section 133(6) by the Income Tax Officer (I CI), Kochi be deleted. 7. The Appellant craves leave to add, amend, alter vary and / or withdraw any or all the above grounds of Appeal. 3.1 The learned Counsel for the assessee reiterated the submissions made before the Income-tax Authorities. 3.2 The learned Departmental Representative submitted that the Cochin Bench of the Tribunal in the case of The Kakoor Service Co-operative Bank Ltd. in ITA No.473/Coch/2015 Others (21 appeals) order dated 23.08.2017 had adjudicated an identical issue in favour of the Revenue. 4. We have heard the rival submission and perused material the record. On identical facts the Cochin Bench of the Tribunal in the cases of Kakoor Service Co-operative Bank Ltd. (supra) had held that the penalty imposed u/s 272A( ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... g. - ... 41.2 At present the provisions of sub-section (6) of section 133 empower Income-tax authorities to call for information which is useful for, or relevant to, any proceeding under the Act which means that these provisions can be invoked only in cases where the proceedings are pending and not otherwise. This acts as a limitation or a restraint on the capability of the Department to tackle evasion effectively. It is, therefore, thought necessary to have the power to gather information which after proper enquiry, will result in initiation of proceedings under the Act. 41.3 With a view to having a clear legal sanction, the existing provisions to call for information have been amended. Now, the income- tax authorities have been empowered to requisition information which will be useful for or relevant to any enquiry or proceedings under the Income-tax Act in the case of any person. The Assessing Officer would, however, continue to have the power to requisition information in specific cases in respect of which any proceeding is pending as at present. However, an Income-tax authority below the rank of the Director or Commissio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... issued by the assessing authority. 22. In view of the above, the appeal requires to be dismissed and accordingly, stands dismissed. 8.3 In the light of the judgment of the Hon'ble Apex Court (supra) and the aforesaid reasoning, I am of the view that the ITO (Intelligence) has jurisdiction to issue notice u/s 133(6) of the I TAct (ii) the order passed u/s 272A(2)(c) is barred by limitation: 8.4 Section 275(1)(c) of the Act prescribed the time limit for imposition of penalty u/s 272A(2)(c) of the I T Act Section 275(1)(c) of the I T Act, reads as follows: 275(1) ....................................... . (c) in any other case after the expiry of the financial year in which the proceedings, in the course of which action for the imposition of penalty has been initiated, are completed, or six months from the end of the month in which action for imposition of penalty is initiated, whichever period expires later. 8.5 Admittedly, penalty proceedings u/s 272A(2)(c) was initiated on 12.8.2014 by issuance of notice u/s 274 of the I T Act and the order im ..... X X X X Extracts X X X X X X X X Extracts X X X X
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