Chennithala Thripperumthura Service Co-Operative Bank Ltd Vs ITO (TDS) (Kerala High Court)
Kerala High Court held that imposition of penalty for failure to furnish particulars sought under section 133(6) of the Income Tax Act is justifiable. Accordingly, request for waiver of penalty rightly rejected.
Facts- The petitioner, a Primary Agricultural Credit Society registered under the Kerala Co-operative Societies Act, 1969, is an assessee under the Income Tax Act, 1961. The Income Tax Officer (TDS), the 1st respondent, issued notice dated 8.1.2016 u/s. 133(6) of the Act, seeking information pertaining to AY 2015-16 regarding TDS/TCS compliance. The petitioner submitted objections on 21.01.2016, but the 1st respondent insisted on furnishing details through a letter dated 04.03.2016. The petitioner sought additional time to prepare and submit the statements.
The petitioner contends that the 1st respondent lacked jurisdiction to issue notice, as the 1st respondent is not the Assessing Officer. The petitioner objected on 28.03.2016, but the 2nd respondent directed compliance by 25.07.2016, threatening the imposition of penalty.
The petitioner submitted the required details on 5.08.2016 and requested the dropping of proceedings. However, the 2nd respondent imposed a penalty of Rs.20,200/- on 17.08.2016
Conclusion- Held that on a perusal of notice, it is noted that “the information is called for u/s 133(6) of the Act after getting necessary approval from the Commissioner of Income Tax (TDS), Kochi.” In view of the principles of law above stated and the fact that the notice was issued after getting necessary approval from the higher authorities, the contention on lack of jurisdiction in the issuance of notice is hereby rejected.
