Loading judgment…
No AI summary yet for this case.
Income Tax Appellate Tribunal, DELHI BENCH “SMC”, NEW DELHI
Before: SHRI H.S. SIDHU
ORDER This appeal filed by the Assessee is directed against the impugned order dated 24.10.2018 passed by the Ld. Commissioner of Income Tax (Appeals), Ghaziabad pertaining assessment year 2010-11.
Facts narrated by the revenue authorities are not disputed by both the parties, hence, the same are not repeated here for the sake of convenience.
At the time of hearing, Ld. Authorised Representative of the Assessee, Ms. Ragini Handa, CA stated that the quantum on which the penalty has been imposed has already been deleted by the ITAT, ‘C’ Bench, New Delhi vide its order dated 12.06.2019 passed in (AY 2010-11) in assessee’s quantum appeal. For the sake of convenience, she filed the copy of the aforesaid Tribunal’s order dated 12.06.2019. Therefore, she requested that since the quantum addition has already been deleted by the Tribunal vide its aforesaid order dated 12.6.2019, therefore, the penalty in dispute is not sustainable in the eyes of law and hence, the same may be deleted accordingly.
On the other hand, Ld. DR has not raised any objection on the request of the Ld. A.R. for the assessee.
I have heard both the parties and perused the orders of the authorities below and the order of the ITAT passed in assessee’s quantum appeal, wherein the ITAT, ‘C’ Bench, New Delhi vide its order dated 12.06.2019 passed in (AY 2010-11) has already been deleted the addition in dispute by holding as under:-
“………The Hon’ble High Court in case of Mallikarjun School Society (Supra) held that an educational institute will not cease to be one existing solely for educational purposes since the object is not to make profit. In present case also the assessee society will not ceased to exist as educational institute because it is providing hostel facility or transportation facility or mess facility, as it is an incidental to the education purpose of the assessee society. Therefore, in view of the Hon’ble Uttrakhand High Court decision in case of Mallikarjun School Society (Supra) and orders of the Co-ordinate Bench in case of Delhi Public School Ghaziabad, the hostel facility provided by assessee society is not in the nature of business and is incidental to the attainment of the main object of the providing education to students. Therefore, provisions of Section 11(4A) will not be applicable to the assessee. Thus, Grounds Nos. 2, 2.1 and 2.2. are allowed…..”
5.1 After perusing the aforesaid finding of the Tribunal in assessee’s appeal, wherein quantum addition has already been deleted on which the penalty has been imposed. Hence, the penalty in dispute is not sustainable in the eyes of law, therefore, the same is deleted.
In the result, the Appeal filed by the Assessee is allowed.