SHREE KARNI EDUCATION TRU ST,JAM KHAMBHALIA vs. ITO EXEMPTION W, RAJKOT

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ITA 167/RJT/2025Status: DisposedITAT Rajkot30 June 2026AY 2012-20133 pages
AI SummaryRemanded

What did the Tribunal hold?

The Tribunal held that since the quantum addition was restored to the Assessing Officer, the penalty proceedings also needed to be reconsidered. The penalty issue was set aside to the Assessing Officer for fresh examination.

What were the facts?

The assessee's appeal for AY 2012-13 was directed against a penalty order under section 271(1)(C). The quantum addition, which formed the basis for the penalty, had been set aside by the Tribunal to the Assessing Officer for fresh adjudication.

What were the issues?

Whether penalty proceedings under Section 271(1)(c) can be sustained when the underlying quantum addition has been set aside for fresh adjudication.

Which sections of the Income-tax Act were involved?

Section 271(1)(c)

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, Rajkot Bench, Rajkot

Before: Dr. Arjun Lal Saini & Shri Sonjoy Sarma

For Respondent: Shri Gopi Nath Chaubey, Ld. Sr. DR
Hearing: 23/06/2026

आयकर अपीलीय अिधकरण, राजकोट �यायपीठ, राजकोट। In The Income Tax Appellate Tribunal, Rajkot Bench, Rajkot Before Dr. Arjun Lal Saini, Accountant Member And Shri Sonjoy Sarma, Judicial Member आयकरअपीलसं./ITA No. 167/Rjt/2025 (�नधा�रणवष�/Assessment Year: (2012-13) Shree Karni Education Trust ITO Exemption W Vipul K Ratnu Shrireshwarnagar, Ayakarbhawan Race course Vs. ring Rajkot Saktinagar, Jamkhabhalia Dist Devbhoomi Dwarka Guajarat �थायीलेखासं./जीआइआरसं./PAN/GIR No.: AACTS 17423 R (अपीलाथ�/Appellant) (��यथ�/Respondent) Appellant by : None Respondent by : Shri Gopi Nath Chaubey, Ld. Sr. DR Date of Hearing : 23/06/2026 30/06/2026 Date of Pronouncement : ORDER Per, Shri Sonjoy Sarma, JM: Captioned appeal filed by the assessee, pertaining to assessment year (AY) 2012-13, is directed against the order under section-250 of the Income- tax Act, 1961 (hereinafter referred to as ‘the Act’) passed by the National Faceless Appeal Centre (NAC) Delhi/Commissioner of Income-tax (Appeals) [in short ‘NFAC/Ld.CIT(A)’], dated 26.02.2024, which in turn arises out of penalty order imposed by the Assessing Officer under section 271(1)(C) of the Income-tax Act.

ITA No.167/Rjt/2025 [ AY 2012-13] Shree Karni Education Trust v. ITO(E)

2.

At the time of hearing, none appeared on behalf of the assessee. Since notices had been duly served by the Registry from time to time and no appearance was made. As the matter we cannot be kept pending indefinitely. Accordingly, with the assistance of the Ld. DR, the matter was heard and taken up for disposal based on the material available on record. 3. It is noticed that in ITA No. 208/Rjt/2024 for Assessment Year 2012–13 relating to the quantum addition, the learned CIT(A) had sustained the addition; however, the Tribunal vide order dated 19.03.2025 set aside the issue to the file of the Assessing Officer for fresh adjudication. Consequently, the penalty proceedings arising out of such quantum addition also require reconsideration. We, after hearing the submissions of the Ld. DR and considering the material available on record, we find that since the quantum issue itself has been restored to the file of the Assessing Officer for fresh examination, the penalty proceedings under section 271(1)(C) also need to be set aside to the file of the Assessing Officer with a direction to re-examine the issue afresh in accordance with law and after providing adequate opportunity of being heard to the assessee. 4. Accordingly, the appeal is treated as allowed for statistical purposes.

Order is pronounced in the open Court on 30/06/2026.

Sd/- Sd/- [ Dr. Arjun Lal Saini ] [ Shri Sonjoy Sarma ] लेखा सद�य/Accountant Member �याियक सद�य/Judicial Member S

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ITA No.167/Rjt/2025 [ AY 2012-13] Shree Karni Education Trust v. ITO(E)

राजकोट/Rajkot िदनांक/ Date: 30/06/2026 Copy of the order forwarded to : 1. The assessee 2. The Respondent 3. CIT 4. The CIT(A) 5. DR, ITAT, Rajkot 6. Guard File By order

Sr. Private Secretary ITAT, Rajkot

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