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Income Tax Appellate Tribunal, DELHI BENCH “C”: NEW DELHI
Before: SHRI AMIT SHUKLA & SHRI PRASHANT MAHARISHI
O R D E R PER AMIT SHUKLA, J.M.
The aforesaid appeal has been filed by the revenue dated 17.3.2016, passed by the Ld. CIT (Appeals)-36, New Delhi in relation to the penalty proceedings u/s 271(1)(c) for the assessment year 2009-
The revenue is mainly aggrieved by the deletion of penalty of Rs. 68,44,237/- made by the AO after denying the exemption u/s 11 on the ground that assessee’s activities are non charitable in nature in terms of proviso to section 2(15).
ITO vs. Young Women’s Christian Association of Delhi
Before us, Ld. Counsel for the assessee submitted that in the quantum proceedings, the matter has been decided in favour of the assessee, by the Tribunal in ITA 1019/Del/2013 (order dated 15.2.2016), wherein the assessee has been granted exemption u/s 11 by holding that assessee’s activities fall within the definition of “charitable purposes” u/s 2(15). Ld. Counsel further pointed out that the said Tribunal order has been affirmed by the Hon’ble High Court in vide judgment dated 2.8.2016. Thus, penalty levied u/s 271(1)(c) has no legs to stand. Ld. DR also admitted that in the quantum proceedings the additions stand deleted and therefore, penalty levied by the AO cannot be sustained.
After considering the aforesaid fact that, when the addition itself stands deleted in the quantum proceedings and such an order has attained finality from the stage of the Hon’ble High Court, then no penalty u/s 271(1)(c) is leviable. Accordingly, order of the Ld. CIT (A) deleting the said penalty is affirmed.
In the result appeal of the assessee is dismissed.