TRUST FOR EDUCATION MANKIND PEACE & LEARNING,GHAZIABAD vs. JCIT, GHAZIABAD

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ITA 6185/DEL/2015Status: DisposedITAT Delhi29 November 2017AY 2010-115 pages
AI SummaryRemanded

What did the Tribunal hold?

The Tribunal noted that the quantum appeal had been set aside to the CIT(A) for fresh adjudication. Therefore, the penalty appeal was also set aside to the CIT(A) to be decided in conformity with the order passed in the quantum appeal.

What were the facts?

The assessee, a trust, filed a return declaring nil income. The Assessing Officer made an addition of Rs. 30,00,000/- on account of unexplained corpus donation. A penalty of Rs. 9,27,000/- was imposed under Section 271(1)(c).

What were the issues?

Whether the penalty imposed under Section 271(1)(c) is sustainable when the addition on merits is subject to further adjudication. The issue of whether the addition itself was legally valid was also raised.

Which sections of the Income-tax Act were involved?

Section 68,Section 115BBC,Section 271(1)(c)

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, DELHI BENCHES: ‘F’, NEW DELHI

For Respondent: Shri Atiq Ahmad, Sr.D.R

ORDER

PER BEENA A PILLAI, JUDICIAL MEMBER The present penalty appeal has been filed by assessee against order dated 09/09/15 passed by Ld. CIT (A), Ghaziabad for assessment year 2010-11 on following grounds of appeal:

1.

ITA 6185/Del/2015 Assessment Year 2010-11 Trust for Education Mankind Peace & Learning “Because, the order of ld.CIT(A) is bad in law and against the facts and circumstances of the case as the penalty on merits is wrongly confirmed solely on the basis of confirmation of addition that too in limine ignoring the fact that neither there is any concealment nor assessee has filed any inaccurate particulars.

2. Because, the ld.CIT(A), grossly erred even not addressing to the issue that on merits addition made u/s 68 read with 115 BBC itself is against the law pronounced by hon’ble jurisdictional/other courts and at the most case could be said based on difference of opinion, hence order is against the law pronounced by hon’ble apex court in case of Reliance Petrochemicals.

3.

Because, without prejudice to above, the ld.CIT(A) erred in ignoring the fact that addition was made merely on the basis of conditional induced surrender as desired by the Ld.AO hence upholding of penalty is against the rules of fair play and pronouncements of hon’ble jurisdictional/other. As per the above grounds, penalty of Rs.9,27,000/- imposed u/s 271(1)(c ) is prayed to be quashed.”

2.

Brief facts of the case are as under: Assessee is a trust and was incorporated vide trust deed dated 29/04/2008. The return of income for the year under consideration was filed on 17/09/10 declaring nil income. The return was selected for scrutiny and the assessment was completed under section 143 (3) of the act on 21/03/13 at an income of Rs. 30,00,000/- by making addition on account of unexplained corpus donation.

ITA 6185/Del/2015 Assessment Year 2010-11 Trust for Education Mankind Peace & Learning 3. Aggrieved by the order of Ld. AO, assessee preferred an appeal before the Ld. CIT (A). The appeal was filed with a delay of 170 days. Assessee made an application for condonation of delay along with the appeal. Ld. CIT (A) however did not condone the delay and dismissed the appeal. Against the order of Ld. CIT (A) assessee preferred appeal before this Tribunal. This Tribunal vide order dated 15/07/16 in condoned the delay and set aside the issue back to Ld. CIT (A) with a direction to decide the appeal of the assessee afresh on merits in accordance with law after giving proper opportunity to the assessee.

4.

We have heard the rival submissions advanced by both the sides on the basis of records placed before us. We have also perused the order of this Tribunal dated l5/07/17, in the quantum appeal in ITA No. 1792/del/2015 for the year under consideration. 4.1. In our considered opinion as quantum appeal has been set aside to Ld. CIT (A), the present penalty appeal also need to be set-aside to be decided in conformity with the order passed by Ld. CIT (A) in quantum appeal.

5.

We are therefore setting aside the present penalty appeal back to the file of Ld.CIT (A), with a direction to decide the issue as per law. Accordingly the grounds raised by assessee stand allowed for statistical purposes.

ITA 6185/Del/2015 Assessment Year 2010-11 Trust for Education Mankind Peace & Learning 6. In the result appeal filed by the assessee stands allowed for statistical purposes.

Order pronounced in the open court on 29.11.2017. Sd/- Sd/- (R.S. SYAL) (BEENA A PILLAI) Vice President Judicial Member Dated: 29th November, 2017. *mv Copy of the Order forwarded to: 1. Appellant 2. Respondent 3. CIT 4. CIT(A) 5. DR 6. Guard File By Order

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