DEPUTY COMMISSIONER OF INCOME TAX, EXEMPTIONS CIRCLE, COIMBATORE vs. UTHANGARAI SRI VIDYA MANDIR EDUCATIONAL AND SOCIAL WELFARE TRUST, KRISHNAGIRI

(प्रत्यर्थी/Respondent) (अपीलार्थी/Appellant) अपीलार्थी की ओर से/ Assessee by : T.Vasudevan, Advocate प्रत्यर्थी की ओर से /Revenue by : Mr.ARV Sreenivasan, CIT & Mr.Saujanya Ranjan, IRS सुनवाई की तारीख/Date of Hearing : 23.09.2025 घोषणा की तारीख /Date of Pronouncement : 09.10.2025 आदेश / O R D E R PER AMITABH SHUKLA, A.M :

The below mentioned appeals have been filed by the appellant Revenue for AY-2015-16 – 2017-18 contesting the order of Ld. First Appellate Authority indicated Column-E, herein below:-

S. Appeal AYs Appellant CIT(A) Order Details Respondent No. Nos. A B C D E F ITA DIN & Order No.ITBA / NFAC / No. S / 250 / 2025-26 / 2112 / Chny 1 2015-16 Uthangarai Sri Vidhya 1076450253(1) dated / 2025 Mandir Educational & 26.05.2025 Deputy Social Welfare Trust, Commissioner & Order No.ITBA / NFAC / No.115 Ramamoorthy of Income Tax, Nagar, S / 250 / 2025-26 / Exemptions 2113 / Chny 2 2016-17 Uthangarai Post, 1076454051(1) dated Circle, / 2025 Uthangarai Taluk, Coimbatore. 26.05.2025 Krishnagiri, & Order No.ITBA / NFAC / Tamil Nadu-635 207. S / 250 / 2025-26 / [PAN: AADTS6092D] 2114 / Chny 3 2017-18 1076449199(1) dated / 2025 26.05.2025 2.0 All the above appeals of the Revenue are centering around a common issue and hence were heard together and are being adjudicated by this common order. The facts of all the cases have been stated to be identical in all the appeals. For the purposes of this common order, facts and figures for AY-2015-16 qua / Chny / 2025 shall be considered as lead year. The decision taken in / Chny / 2025 shall apply mutatis mutandis in / Chny / 2025.

3.0 All the above three appeals, through grounds of appeal, are centering around the issue of order passed by the Ld.CIT(A) issuing directions to the Ld.AO to levy the penalty after due verification of facts. It is the case of the appellant Revenue that the impugned direction constitutes an act of setting aside the penalty order passed u/s 271AAB(1) of the Act dated 08.02.2022. The Ld.DR fiercely contested that the impugned direction to “….levy the penalty after due verification of facts..”,

Page - 2 - of 5 constitutes an Act of setting aside for fresh adjudication and that the Ld.First Appellate Authority does not possess any statutory authority to issue such directions. 4.0 The Ld.Counsel for the assessee argued that there is no infirmity in the impugned directions of the Ld.CIT(A). It was vehemently argued that the Ld.AO had levied penalty without considering the order of this tribunal and that consequently the directions of the Ld.CIT(A) were merely issued to the Ld.AO for levy of penalty, if any, after due consideration of the directions of the tribunal. 5.0 We have heard rival submissions in the light of material available on records. The assessee is a Charitable Trust engaged in the activity of running Educational Institutions. As per brief facts of the case vividly recorded by Ld.CIT(A) in his order dated 26.05.2025 for AY-2015-16 the assessing officer had passed an order u/s 143(3) r.w.s. 153A dated 26.12.2018 determining total income of Rs.26,12,30,776/- which was contested before the Ld.CIT(A). Not fully contended with the decision, the assessee preferred an appeal before the Hon’ble ITAT, Chennai which allowed further part relief to the assessee. The Ld.AO proceeded to pass order u/s 271AAB(1) dated 08.02.2022 . While doing so, the order in 716 and 717 / Chny / 2020 dated 10.04.2024 of the tribunal has not been considered by the Ld.AO. The Ld.CIT(A) in his order described in detail on pages 14 – 30 the relief given by the ITAT. Page - 3 - of 5 He has also recorded that the Ld.AO has passed an appeal giving effect order (OG) dated 16.07.2024 in the case of the assessee . The assessee had primarily contended before the Ld.CIT(A) that the penalty order u/s 271AAB(1) dated 08.02.2022 of the Ld.AO is not in conformity with the appeal giving effect order (OG) dated 16.07.2024 of the Ld.AO. 6.0 In the above background we have noted that the Ld.CIT(A) has merely directed the Ld.AO to, in effect recompute his penalty order u/s 271AAB(1) by taking cognizance of his own appeal giving effect order (OG) dated 16.07.2024. In the light of these facts, we are of the considered view that the directions of the Ld.CIT(A) do not constitute an Act of setting aside of an order. His directions are merely to recompute the quantum of penalty after considering directions of Hon’ble ITAT which led to passing of the appeal giving effect order (OG) dated 16.07.2024. Accordingly, all the grounds of appeal raised by the Revenue are dismissed. 7.0 In the result, the appeal of the Revenue vide / Chny / 2025 for AY-2015-16 stands dismissed. 8.0 As stated above the rival parties have conceded that the facts of the case for all the years are identical. Consequently, the decision taken herein above in / Chny / 2025 for AY-2015-16 shall apply mutatis mutandis in ITA No.2113 / Chny / 2025 for AY-2016-17 and AY-2017-18 respectively. Accordingly, the Page - 4 - of 5 appeals of the Revenue for and 2114 supra also stands dismissed. 9.0 In the result, the appeals of the Revenue are decided as under:-