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8. Aggrieved the assessee is in appeal before the Tribunal. The common Ground No. 1, 3, & 4 in both the appeals relate to imposition of the impugned penalty which has been confirmed by the Ld. CIT(A) and Ground No. 2 relates to confirmation of the impugned penalty by the Ld. CIT(A) after the expiry of limitation period provided under section 275(1)(c) of the Act.

9. The Ld. AR submitted that the assessee is a co-operative society registered with the Registrar of Co-operative Societies, Govt. of NCT, New Delhi on 20.06.1956. The society works on the concept of mutuality and is engaged in the activity of granting thrift and credit facilities to its members (more than 4000) who are taxi operators coming from rural areas. The Registrar of Co-operative Societies (RCS) has classified the society under Banking Section and the Assistant Registrar (Banking) Govt. of NCT, New Delhi is supervising the activities of the society.

9.4 Stress was laid on the fact that the concept of mutuality in the case of Co-operative Societies has been recognised by the Hon'ble Supreme Court in ITO vs. Venketsh Premises co-operative societies Ltd. (2018) 402 ITR 670 (SC) which is based on the theory that a person cannot make profit from himself. The assessee society is engaged in the activity of granting thrift and credit facilities to its members who are taxi operators from rural ITA Nos. 3107 & 3108/Del//2019 background. It is registered body and undertakes its activities in compliance to its bye laws duly approved by the Registrar of Co-operative Societies.

20. Section 273 of the Act ordains that no penalty under section 271D and 271E shall be imposable on the person or the assessee if he proves that there was reasonable cause for the failure. During penalty proceedings before the Ld. JCIT, the assessee vide reply dated 15.03.2017 submitted that the audit report under section 44AB of the Act obtained from an ITA Nos. 3107 & 3108/Del//2019 independent Chartered Accountant confirmed that the provisions of section 269SS and 269T are not applicable to the society; the provisions of section 269SS and 269 have no application to the facts of the case and the society is under bonafide belief, the deposits are made/repaid are voluntarily by the members and are genuine; it is a case of mutually aided society for the benefit of its members and the proceedings for imposing penalty under section 271D and 271E may kindly be dropped. The explanation was not acceptable to the Ld. JCIT. In the statement of facts filed by the assessee before the Ld. CIT(A) it stated that the society works on the concept of mutuality and engaged in thrift and credit business, welfare activities of its members and employees and accepting deposits from its members and redeploying the funds by way of advancing loans to its members. It was further stated that as the nature of activities of the society is that of thrift credit/banking, the society has been classified under the Banking Section (as per Part V of the Banking Regulation Act, 1949) of the Co-operative Societies and the Assistant Registrar (Banking), Government of NCT, Delhi is supervising the activities of the society.