SURGUJA SEVA UNNATI SANSTHAN,SARGUJA (C.G) vs. JOINT. CIT, RANGE- KORBA, KORBA(CG)

IN THE INCOME TAX APPELLATE TRIBUNAL RAIPUR BENCH, RAIPUR BEFORE:SHRI N.S.SAINI, AM & SHRI PAVAN KUMAR GADALE,JM ITA No.31/RPR/2015 (Assessment Year : 2009-10) We Care Welfare Society, vs JCIT, Range-Korba, C/o Avinash Jaiswal, Mahanadi Complex, Tiwari Building Road, Niharika Road, Kedarpur, Korba(C.G.) PO-Ambikapur, Dist: Sarguja (CG) PAN No. : AAAFW 8858 L (Appellant) .. tsednepseR AND ITA No.32/RPR/2015 (Assessment Year : 2009-10) Surguja Seva Unnati Sansthan, vs JCIT, Range-Korba, C/oRajiv Kumar Pathak, Mahanadi Complex, Bhatti Road, Kedarpur, Niharika Road, Ambikapur, Dist: Sarguja (CG) Korba(C.G.) PAN No. : AABAS 5081 M (Appellant) .. tsednepseR Assessee by : Shri G.S.Agrawal, AR Revenue by : Shri O.P.Chaudhary, DR Date of Hearing : 18/01/2018 Date of Pronouncement 18/01/2018 आदेश / O R D E R Per Shri N.S.Saini, AM: These are the appeals filed by the different assessees against the order of the CIT(A), Bilaspur, both dated 20.10.2014 for the assessment year 2009-2010. 2. The sole grievance of both the assessees in their respective appeals is that the CIT(A) erred in confirming the penalty levied u/s.272A(2)(e) of the Act by the assessing officer at Rs.45,400/- in case of We Care Welfare Society and Rs.46,700/- in case of Surguja Seva Unnati Sansthan for assessment year 2009-2010. 3. Brief facts of the case are that the assessee is a society registered u/s.12AA of the Income Tax Act, 1961 and filed return of income for assessment year 2009-10 disclosing income at Nil. According to the AO,

2 ITA No.31&32/RPR/2015 the assessee-We Care Welfare Society, should have filed the return of income on or before September, 2010 for assessment year 2009-2010 in accordance with the provisions of Section 139(4A) or 139(4C) of the Act. Since the assessee filed the return of income for assessment year 2009-2010 on 28.12.2010, therefore, there was a delay of 454 days. Hence, he levied penalty u/s.272A(2)(e) of the Act @100/- per day at Rs.45,400/-. Similarly the AO observed that the assessee- Sarguja Seva Unnati Sansthan should have filed the return of income on or before September, 2010 for assessment year 2009-2010 in accordance with the provisions of Section 139(4A) or 139(4C) of the Act. Since the assessee filed the return of income for assessment year 2009- 2010 on 10.01.2011, therefore, there was a delay of 467 days. Hence, he levied penalty u/s.272A(2)(e) of the Act @100/- per day at Rs.46,700/-. 4. Before the CIT(A) the assessee submitted that the assessee filed return of income declaring income at Rs.Nil and, thus, the income is below the taxable limit. Therefore, the assessee had bonafide belief as the income was below the taxable limit, there was no obligation to file the return of income. 5. On appeal, the CIT(A) confirmed the penalty levied by the Assessing Officer. 6. The AR of the assessee reiterated the submissions made before the lower authorities. 7. On the other hand, the DR supported the orders of lower authorities. 8. We find that the facts narrated above are not in dispute that both the assessees filed return of income for both the year under appeals

3 ITA No.31&32/RPR/2015 showing Nil income, thus, income of the assessee was below the taxable limit and, therefore, both the assessee had bonafide belief that when the income was below the taxable limit, there was no obligation to file the return of income. We find that the Hon'ble Supreme Court in the case of Hindustan Steel Ltd. v The State of Orissa, 83 ITR 26, has held that for a technical or venial breach of the provision of the Act, no penalty is to be levied. In view of the above decision of Hon’ble Supreme Court in the case of Hindustan Steel Ltd.(supra), we are of the considered view that the assessee society is not liable for penalty u/s.272A(2)(e) of the Act for delay in filing the return of income. Therefore, we cancel the penalty levied by the Assessing Officer of Rs.45,400/- in case of assessee -We Care Welfare Society and Rs.46,700/- in case of assessee- Sarguja Seva Unnati Sansthan for the assessment year 2009-10. 9. In the result, appeals filed by both assessees are allowed. Order pronounced in the Court on Thursday, the 18th Day of January, 2018 at Raipur. Sd/- Sd/- (PAVAN KUMAR GADALE) (N. S. SAINI) न्याययक सदस्य / JUDICIAL MEMBER ऱेखा सदस्य / ACCOUNTANT MEMBER Raipur; ददन ांक Dated 18/01/2018 प्र.कु.मि/PKM, Senior Private Secretary आदेश की प्रयिलऱपि अग्रेपिि/Copy of the Order forwarded to : 1. अऩीऱ थी / The Appellant- प्रत्यथी / The Respondent- 2. आयकर आयुक्त(अऩीऱ) / The CIT(A), 3. आयकर आयुक्त / CIT 4. विभ गीय प्रतततनधध, आयकर अऩीऱीय अधधकरण, Raipur / DR, ITAT, Raipur 5. ग र्ड प ईऱ / Guard file. 6. आदेशानुसार/ BY ORDER, सत्य वऩत प्रतत //True Copy// (Senior Private Secretary) Income Tax Appellate Tribunal, Raipur