COMMISSIONER OF INCOME TAXEXEMPTIONS vs. URBAN IMPROVEMENT TRUST KOTA

HIGH COURT OF JUDICATURE FOR RAJASTHAN BENCH AT JAIPUR D.B. Income Tax Appeal No. 72/2018 Commissioner Of Income Tax (Exemptions), 3Rd Floor, Kailash Heights, Lal Kothi, Tonk Road, Jaipur ----Appellant Versus Urban Improvement Trust, Kota ----Respondent For Appellant(s) : Mr. Daksh Pareek for Mr. Sameer Jain HON'BLE MR. JUSTICE K.S.JHAVERI HON'BLE MR. JUSTICE INDERJEET SINGH Judgment 17/04/2018 1. By way of this appeal, the appellant has assailed the judgment and order of the Tribunal whereby tribunal has allowed the appeal of the assessee for statistical purposes and dismissed the appeal of the department. 2. Counsel for the appellant has framed following substantial question of law:- i. Whether on the facts and in the circumstances of the case and in law the Hon’ble ITAT is right in setting aside the order of imposition of penalty relying on the Hon’ble High Court’s decision in the case of UIT, Kota in D.B. Income Tax Appeal No.357/2011 for A.Y. 2004-05, inspite of the fact that the income of UIT is not exempt u/s 10(20) after insertion of explanation to section 10(20) w.e.f. 1.4.2003, by Finance Act, 2002?

(2 of 2) [ITA-72/2018] ii. Whether on the facts and in the circumstances of the case and in law the Hon’ble ITAT is right in setting aside the order of imposition of penalty relying on the Hon’ble High Court’s decision in the case of UIT, Kota in D.B. Income Tax Appeal No.357/2011 for A.Y. 2004-05, which has not reached the finality? 3. The facts of the case are that the assessee did not file any return for the year. The Hon’ble ITAT Jaipur Bench, Jaipur vide its order in appeal no.366 and 367/JP/2010 dt. 18.3.2011 for A.Y. 2003-04 and 2004-05 held that assessee is not exempted from tax u/s 10(20) of the IT Act, 1961 and therefore, income of the assessee is taxable. As the assessee did not file any return for the year under consideration, a notice u/s 148 was issued to the assessee on 7.10.2011. The assessee did not comply with the notice and not file any return. Therefore, the case of the assessee was assessed u/s 144 of the Act on 18.2.2013 at the total income of Rs.9727.42 lakhs. Simultaneously, penalty proceedings u/s 271(1)(c) were initiated against the assessee for concealment of particulars of his income and a show cause notice dt. 18.2.2013 was issued to the assessee. 4. In view of the fact that order passed in appeal against quantum has been upheld by the High Court, the decision taken by the tribunal is just and proper. Therefore, no substantial question of law arises. 5. The appeal stands dismissed. (INDERJEET SINGH),J (K.S.JHAVERI),J Brijesh 37.