VIDHYADEEP CHARITABLE TRUST,SURAT vs. THE ACIT/DCIT (EXEMPTION) CIRCLE-2,, AHMEDABAD

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ITA 950/AHD/2026Status: DisposedITAT Ahmedabad03 July 2026AY 2020-213 pages
AI SummaryRemanded

What did the Tribunal hold?

The Tribunal held that since the quantum appeal regarding the addition of donations was still pending, the penalty proceedings should be decided after the disposal of the quantum appeal. The impugned order was set aside and restored to the CIT(A).

What were the facts?

The assessee, a charitable trust, received cash donations aggregating to Rs. 3,53,61,201/-. The Assessing Officer treated these as anonymous donations and levied a penalty under Section 271D for violating Section 269SS.

What were the issues?

Whether penalty under Section 271D for violation of Section 269SS can be sustained when the quantum appeal regarding the addition of donations is pending. Whether the penalty proceedings should be decided after the disposal of the quantum appeal.

Which sections of the Income-tax Act were involved?

Section 271D,Section 269SS,Section 115BBC,Section 250

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, “A” BENCH, AHMEDABAD

Before: DR. B.R.R. KUMAR, VICE-SHRI RAHUL CHAUDHARY

For Appellant: Shri P.M. Jagaseth, AR
For Respondent: Shri Unavekar Kiran Panchamram
Hearing: 02.07.2026Pronounced: 03.07.2026

IN THE INCOME TAX APPELLATE TRIBUNAL “A” BENCH, AHMEDABAD BEFORE DR. B.R.R. KUMAR, VICE-PRESIDENT SHRI RAHUL CHAUDHARY, JUDICIAL MEMBER ITA No. 950/Ahd/2026 (Assessment Year: 2020-21) Vidhyadeep Charitable Trust, ACIT/DCIT Vs. Plot No. 221, TP No.13, (Exemption) Vidyakunj Circle, Subhas Circle-2, Chandra Bose Marg, Palanpur Ahmedabad Jakatnaka, Surat-395009 [PAN : AAATV 7851 Q] (Appellant) .. (Respondent) Appellant represented by : Shri P.M. Jagaseth, AR Respondent represented by: Shri Unavekar Kiran Panchamram, CIT-DR Date of Hearing 02.07.2026 Date of Pronouncement 03.07.2026 O R D E R PER DR. B.R.R. KUMAR, VICE-PRESIDENT:- This appeal has been filed by the assessee against the order dated 21.01.2026 passed by the Ld. Commissioner of Income Tax (Appeals), National Faceless Appeal Centre (NFAC), Delhi (hereinafter referred to as ‘Ld. CIT (A)’ in short), under Section 250 of the Income-tax Act, 1961 (hereinafter referred to as ‘the Act’ in short) for Assessment Year 2020-21. 2. The assessee has raised following grounds of appeal:- “1. On the facts and in the circumstances of the case as well as the law on the subject, the learned Commissioner of the Income Tax (Appeals) has erred in confirming the action of the Assessing Officer in initiating penalty proceedings u/s.271D of the Income Tax Act, 1961. 2. On the facts and in the circumstances of the case as well as the law on the subject, the learned Commissioner of the Income Tax (Appeals) has erred in confirming the action of the Assessing Officer in levying penalty of Rs.3,53,61,201/- u/s. 271D of the Income Tax Act, 1961 in contravention of section 269SS of the I.T. Act, 1961.” 3. The brief facts of the case are that, during the assessment proceedings, the Assessing Officer noticed that the assessee had received cash donations

ITA No. 950/Ahd/2026 Vidhyadeep Charitable Trust Vs. ACIT Asst.Year : 2020-21 - 2– aggregating to Rs.3,53,61,201/-. As the assessee failed to furnish the requisite details of such donations, the amount was treated as anonymous donations and taxed u/s 115BBC of the Act. The Assessing Officer also levied penalty of Rs.3,53,61,201/- u/s 271D of the Act holding that the receipt of cash donations violated the provisions of section 269SS of the Act.

4.

Aggrieved by the penalty order, the assessee preferred an appeal before the Ld. CIT(A). The Ld. CIT(A) upheld the action of the Assessing Officer and confirmed the levy of penalty u/s 271D of the Act.

5.

Before us, the Ld. AR submitted that the quantum appeal arising from the addition u/s 115BBC of the Act is still pending disposal before the Ld. CIT(A). It was, therefore, prayed that the penalty proceedings may be restored to the file of the Ld. CIT(A) to be decided after disposal of the quantum appeal.

6.

The Ld. DR, on the other hand, relied upon the orders of the lower authorities.

7.

We have considered the rival submissions and perused the material available on record. Since the impugned penalty emanates from the addition made in the quantum proceedings and the quantum appeal is stated to be pending adjudication, the outcome thereof would have a direct bearing on the penalty. In these circumstances, we deem it appropriate to set aside the impugned order and restore the matter to the file of the Ld. CIT(A) for fresh adjudication after disposal of the quantum appeal, in accordance with law, after affording adequate opportunity of hearing to the assessee.

8.

In the result, the appeal of the assessee is allowed for statistical purposes. The order pronounced in the open Court on 03.07.2026

Sd/- Sd/-

(RAHUL CHAUDHARY) (DR. B.R.R. KUMAR) JUDICIAL MEMBER VICE-PRESIDENT Ahmedabad; Dated 03.07.2026

ITA No. 950/Ahd/2026 Vidhyadeep Charitable Trust Vs. ACIT Asst.Year : 2020-21 - 3– **btk आदेश की �ितिलिप अ�ेिषत / Copy of the Order forwarded to : अपीलाथ�/ The Appellant 1. ��थ�/ The Respondent. 2. संबंिधतआयकरआयु�/ Concerned CIT 3. 4. आयकरआयु�(अपील) /The CIT(A)- 5. िवभागीय�ितिनिध, आयकरअपीलीयअिधकरण, अहमदाबाद/ DR, ITAT, Ahmedabad 6. गाड�फाईल /Guard file. आदेशानुसार/ BY ORDER, True Copy सहायकपंजीकार (Dy./Asstt. Registrar) आयकरअपीलीयअिधकरण, , अहमदाबाद / ITAT, Ahmedabad , ,

1.

Date of dictation … ……words processed by the Hon’ble VP on his PC On …01.07.1016… 2. Date on which the typed draft is placed before the Dictating Member ……….02.07.2026 3. Other Member…………..02.07.2026…. 4. Date on which the approved draft comes to the Sr.P.S./P.S…………..02.07.2026… 5. Date on which the fair order is placed before the Dictating Member for pronouncement……03.07.2026 6. Date on which the fair order comes back to the Sr.P.S./P.S….........03.07.2026 7. Date on which the file goes to the Bench Clerk ……….03.07.2026 8. Date on which the file goes to the Head Clerk…………………………………... 9. The date on which the file goes to the Assistant Registrar for signature on the order 10. Date of Dispatch of the Order…………………………………… 11.

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