THAKU BHOJWANI CHARITABLE TRUST,MUMBAI vs. INCOME TAX OFFICER (EXEMPTION), WARD 2(4), MUMBAI, MUMBAI

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ITA 6167/MUM/2026Status: DisposedITAT Mumbai03 September 2026AY 2023-242 pages

In favour of the assessee: the assessee's appeal was allowed. From the AI summary of this appeal.

AI SummaryAllowed

What did the Tribunal hold?

The Tribunal held that once the underlying addition forming the basis of the penalty was deleted by a co-ordinate bench, the penalty could not survive. Therefore, the penalty was deleted.

What were the facts?

The Assessing Officer levied a penalty under Section 270A on the assessee for under-reported income arising from the disallowance of corpus donation. The assessee's appeal against the penalty was dismissed by the Commissioner (NFAC).

What were the issues?

Whether penalty under Section 270A can be sustained when the underlying addition has been deleted. The validity of disallowance of corpus donation in the absence of registration under Sections 11/12.

Which sections of the Income-tax Act were involved?

Section 270A,Section 11,Section 12,Section 250

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, MUMBAI BENCH “E”, MUMBAI

Before: SHRI NARENDER KUMAR CHOUDHRY & SHRI BIJAYANANDA PRUSETH

Pronounced: 03.09.2026

IN THE INCOME TAX APPELLATE TRIBUNAL, MUMBAI BENCH “E”, MUMBAI BEFORE SHRI NARENDER KUMAR CHOUDHRY, JUDICIAL MEMBER And SHRI BIJAYANANDA PRUSETH, ACCOUNTANT MEMBER ITA No. 6167/M/2026 Assessment Year: 2023-24 Thaku Bhojwani Charitable Income Tax Officer Trust, (Exemption), Ward 2(4), 4, 17C, Rushilla CHS, M.L. Mumbai, Vs. 6th Floor, MTNL Tel. Dahanukar Marg, Carmichael Road, Mumbai, Maharashtra - Building, Cumballa Hills, 400026 Pedder Road, Mumbai, PAN – AAATT0150C Maharashtra - 400026 (अपीलार्थी/ Appellant) (प्रत्यर्थी /Respondent) Present for: निर्धाऩिती द्वधिध/Assessee Shri Jeet Kamdar, Ld. AR represented by: िधजस्‍व द्वधिध/Revenue represented Smt. Sujatha Iyyanger, Ld. SR DR by:

सुनवाईकीतारीख/Date of conclusion of hearing: 03.09.2026 घोषणाकीतारीख/Date of pronouncement: 03.09.2026

O R D E R Per : Narender Kumar Choudhry, Judicial Member

This appeal has been preferred by the Assessee against the order dated 28.03.2026, impugned herein, passed by the National Faceless Appeal Centre (NFAC), Delhi (in short “Ld. Commissioner”) u/s 250 of the Income Tax Act, 1961 (in short “the Act”) for the A.Y. 2023-24.

2.

In the instant case, the AO vide penalty order dated 26.06.2025 passed u/s 270A of the Act levied penalty of Rs.7,528/-, being 200% of the tax payable on the alleged under- reported income of Rs.30,000/-, arising from disallowance of

2 ITA No. 6167/M/2026 Thaku Bhojwani Charitable Trust corpus donation made in the assessment proceedings in the absence of registration u/ss 11/12 of the Act.

3.

The Assessee challenged the penalty before the Ld. Commissioner, who vide the impugned order dated 28.03.2026 affirmed the levy of penalty and dismissed the appeal. Hence, the Assessee is in appeal before us.

4.

Heard the parties and perused the material available on record. Admittedly, the Co-ordinate Bench of the Tribunal in ITA No. 6166/Mum/2026, decided on 19.08.2026, has deleted the underlying addition of Rs.30,000/-. Once the very addition forming the basis of the penalty stands deleted, the penalty levied u/s 270A of the Act cannot survive. Accordingly, the penalty of Rs.7,528/- levied by the AO and affirmed by the Ld. Commissioner is deleted.

5.

In the result, the appeal filed by the Assessee is allowed.

Order pronounced in the open court on 03.09.2026.

Sd/- Sd/- (BIJAYANANDA PRUSETH) (NARENDER KUMAR CHOUDHRY) ACCOUNTANT MEMBER JUDICIAL MEMBER (ANKIT SWARNKAR) Private Secretary Copy to: The Appellant The Respondent The CIT, Concerned, Mumbai The DR Concerned Bench //True Copy// By Order

Dy/Asstt. Registrar, ITAT, Mumbai.

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