Imposition of penalty u/s 271FA prior to 01.04.2015 for non-furnishing of AIR by co-operative bank unsustainable

Advertisement Suco Souharda Sahakari Bank Ltd Vs Joint Director of Income Tax (ITAT Bangalore) ITAT Bangalore held that co-operative bank is liable to furnish AIR only after 01.04.2016 in view of amendment under Rule 114E of Income Tax Rules, 1962. Accordingly, imposition of penalty u/s 271FA prior to 01.04.2016 is unsustainable. Facts- The assessee is a society registered under the Karnataka Souhardha Sahakari Act, 1997. The objects of the assessee society are to carry on the business of banking by accepting deposits and lending money to the members of the Sahakari. The assessee’s busine...