BALARAMPUR COLLEGE,BALARAMPUR vs. COMMISSIONER OF INCOME TAX (APPEALS), INCOME TAX DEPARTMENT

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ITA 629/KOL/2024Status: DisposedITAT Kolkata18 December 2024AY 2020-21Bench: Shri Sanjay Garg (Judicial Member), Shri Sanjay Awasthi (Accountant Member)3 pages

In favour of the assessee: the assessee's appeal was allowed. From the AI summary of this appeal.

AI SummaryAllowed

What did the Tribunal hold?

The Tribunal held that the penalty levied under Section 272A(1)(d) was not justified. Considering the Covid-19 pandemic period and the college's use as a shelter, the non-compliance was due to circumstances beyond the assessee's control and without any intention to evade taxes.

What were the facts?

The assessee, Balarampur College, is an educational institution claiming exemption under Section 10(23C). During the Covid-19 pandemic, the college was used as a shelter, leading to non-compliance with notices issued by the Assessing Officer under Section 142(1). A penalty was levied for this non-compliance.

What were the issues?

Whether the penalty for non-compliance with notices issued under Section 142(1) is justified when the non-compliance occurred during the Covid-19 pandemic due to the premises being used as a shelter, and the assessee claims exemption under Section 10(23C).

Which sections of the Income-tax Act were involved?

Section 142(1),Section 272A(1)(d),Section 10(23C)

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, “C” BENCH KOLKATA

Before: Shri Sanjay Garg & Shri Sanjay Awasthi

आदेश / ORDER

Per Sanjay Garg, Judicial Member :

1.

The captioned appeal has been preferred by the assessee against the order dated 15.12.2023 of the Ld. Commissioner of Income Tax, (Appeals), National Faceless Appeal Centre (NFAC), Delhi [hereinafter referred to as the “Ld. CIT(A)”] passed u/s. 250 of the Income-tax Act, 1961 (hereinafter referred to as the “Act”) for AY 2020-21.

2.

The assessee in this appeal has contested the levy of penalty u/s. 272A(1)(d) of the Act of Rs.40,000/- for non compliance of notices issued u/s. 142(1) of the Act by the Assessing Officer (hereinafter referred to as the “AO”) during the assessment proceedings. No one has put an appearance on behalf of the assessee despite notices, therefore, we proceed to decide the appeal after hearing the Ld. Sr. DR and going Balarampur College. AY 2020-21 through the material available on record. A perusal of the record reveals that the assessee is an educational college and claims exemption u/s. 20(23C) of the Act. It has further been pleaded that during the Covid Pandemic period, the assessee college was used by the Government as shelter house for covid warriors, health workers and others. It has, therefore, been pleaded that during that period the college was not properly working. That somehow, the notices issued by the AO u/s. 142(1) of the Act escaped the attention of the authorities. However, since the assessee college is established solely for education purposes and is a State Government aided college, its income is exempt from income tax. There was no intention either to avoid the due taxes or noncompliance of the notices issued by the AO.

3.

Considering that the impugned notices were issued during the Covid Pandemic Period, the assessee has duly explained its inability during the Covid period in non-compliance of the said notice and there seems no intention to avoid the taxes, the assessee college being claiming exemption u/s. 10(23C) of the Act, we do not find justification in the levy of impugned penalty, the same is accordingly, ordered to be deleted.

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