Shramjivi Nagari Sahakari Pat Sanstha vs. ACIT (ITAT Pune)
*AO directed to pay costs for “recovery harassment”
The assessee, a credit co-operative society, contravened s. 269SS & 269T because of which penalty u/s 271E was levied. The CIT(A) confirmed the levy of penalty. *Before service of the CIT(A)’s order, the assessee’s bank account was attached u/s 226(3)*. The assessee filed a stay application and claimed that as the assessee had to bear costs owing to the illegal action of the AO, costs had to be awarded to it. HELD upholding the assessee’s plea:
*AO directed to pay costs for “recovery harassment”
The assessee, a credit co-operative society, contravened s. 269SS & 269T because of which penalty u/s 271E was levied. The CIT(A) confirmed the levy of penalty. *Before service of the CIT(A)’s order, the assessee’s bank account was attached u/s 226(3)*. The assessee filed a stay application and claimed that as the assessee had to bear costs owing to the illegal action of the AO, costs had to be awarded to it. HELD upholding the assessee’s plea:
