TMI Blog2019 (8) TMI 892X X X X Extracts X X X X X X X X Extracts X X X X ..... y S. For the Respondent : Smt.A.S.Bindhu, Sr.DR ORDER PER GEORGE GEORGE K, JM : This appeal at the instance of the assessee is directed against the order of the CIT(A) dated 26.02.2019. 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. There is a delay of 66 days in filing appeal. The assessee has filed petition for condonation of delay. We have perused the reasons stated for filing the appeal belatedly. We find that there is sufficient cause for the delayed filing of the appeal and no latches can be attributed to the assessee. Hence, we condone the delay and proceed to dispose off the same on merits. 3. The brief facts of the case are as follow: 3.1 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , or relevant to any enquiry only shall be called for under Section 133(6) and that there was no mention in the notice issued by Income Tax Officer (Intelligence) about any such enquiry under the Income Tax Act 1961. F. The Commissioner of Income-tax (Appeals) ought to have seen that the imposition of penalty is time barred under section 275(1) (c) of The Income Tax Act 1961in as much as the proceedings for imposition of penalty was initiated on the date of notice issued by the Income Tax Officer (Intelligence), for the initiation of such proceedings. G. The Commissioner (Appeals) has not considered and answered the questions of law raised in the grounds of appeal, by a speaking order. H. The Appellant prays that the penalty of ₹ 59,400/- 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 (Intelligence), may be deleted. I. The Appellant craves leave to add, amend, alter vary and / or withdraw any or all the above grounds of Appeal. 3.4 The learned Counsel for the assessee ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to be widened, and even in a case where no proceeding was pending, such information could be called for as part of the enquiry, subject to the rider that, such power was not to be exercised by any income tax authority below the rank of Director or Commissioner without the prior approval of the Director or the Commissioner, as the case may be. The said amendment was brought about as a measure to tackle tax evasion effectively, as clarified by the Central Board of Direct Taxes (CBDT) vide Circular no. 717 dated 14.8.1995, which reads as follows: Power to call for information when no proceeding is pending. - ... 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 resul ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... dmittedly, in the present case, notice was issued only after obtaining approval of the Commissioner of Income-tax, Co chin. In the light of the aforesaid, we are of the considered opinion that the assessing authority has not erred in issuing the notice to the assessee-financial institution requiring it to furnish information regarding the account holder with cash transactions or deposits of more than ₹ 1,00,000. 21. Therefore, we hold that the Division Bench of the High Court was justified in its conclusion that for such enquiry under section 133(6) the notice could be validly 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 S ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 17/C/ 2017). Since there is no reasonable cause furnished by the assessee as mentioned u/s 2738 of the I T Act for non furnishing of information sought by the ITO(intelligence) u/s 133(6) of the Act I am of the view that the order imposing penalty cannot be quashed. It is ordered accordingly. 9 In the result, the appeal in ITA No.473/Coch/ 2015 is dismissed. 10. Both the parties have agreed that the facts considered by the Tribunal in ITA No 473/C/2015 are identical to the facts of the other appeals. Therefore, for the reasons stated in para 8 to 8.6, the appeals in ITA Nos. 243/Coch/2013, 544/Coch/ 2015, 190/Coch/2016, 126/Coch/2017, 158/Coch/ 2017, 153/Coch/2017, 146/C/2017, 194/C/2017, 159/C/2017, 197/C/2017, 196/C/2017, 195/C/ 2017, 152/C/2017, 204/C/2017, 206/C/2017, 200/C/2017, 198/C/2017, 202/C/2017, 201/C/ 2017 and 217/C/2017 are dismissed. 11 To sum-up all the 21 appeals filed by the different assessees are dismissed. 5. In view of the above order of the Tribunal which is identical to the facts of the present case, we hold that the CIT(A) is justified in upholding the order passed u/s 272A(2)(c) of ..... X X X X Extracts X X X X X X X X Extracts X X X X
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