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

ITA 629/KOL/2024

AI Insights

The case involves Balarampur College, an educational institution claiming exemption under section 10(23C) of the Income-tax Act, 1961, which faced a penalty for not complying with notices under section 142(1) during the COVID-19 pandemic. The college argued that during the pandemic, it was repurposed as a shelter for COVID warriors and health workers, leading to unintentional oversight of the notices. The Income Tax Officer (ITO), Ward-3(2), Purulia, had imposed a penalty of Rs. 40,000, which was contested in the appeal. The Tribunal, after considering the circumstances and the college's claim of exemption, decided in favor of the college, highlighting the lack of intention to evade tax and the impact of the pandemic on its operations.

• Counselvise Citation: [2024] 140 COUNSELVISE.COM (IT) 472680 (ITAT-KOLKATA)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 18-12-2024
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: C
• Assessment Year: 2020-2021
• Laws Referred To: Income-tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Non compliance
• Section: 142(1); 250; 10(23C)

Judgement Text

" आयकर अपीलȣय अͬधकरण, कोलकाता पीठ ‘C’, कोलकाता IN THE INCOME TAX APPELLATE TRIBUNAL “C” BENCH KOLKATA Before Shri Sanjay Garg, Judicial Member and Shri Sanjay Awasthi, Accountant Member I.T.A. No.629/Kol/2024 Assessment Year: 2020-21 Balarampur College .………. Appellant Vill. & PS – Balarampur, Post office- Balarampur-723143 Dist. Purulia, West Bengal (PAN: AAALB0629E) vs. ITO, Ward-3(2), Purulia ……..… Respondent Appearances by: N o n e appeared on behalf of the Appellant Shri Ankur Goyal, Sr. DR appeared on behalf of the Respondent Date of concluding the hearing: December 18, 2024 Date of pronouncing the order: December 18, 2024 आदेश / ORDER Per Sanjay Garg, Judicial Member : 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 2 ITA No. 629/Kol/2024 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. 4. In the result, appeal of the assessee stands allowed. Order is pronounced in the open court on 18.12.2024. Sd/- Sd/- [Sanjay Awasthi] [Sanjay Garg] लेखा सदèय/Accountant Member ÛयाǓयक सदèय/Judicial Member Dated: 18.12.2024. JD Sr. P.S 3 ITA No. 629/Kol/2024 Balarampur College. AY 2020-21 Copy of the order forwarded to: 1. Appellant – Balarampur College, Balarampur 2. Respondent – ITO, Ward-3(2), Purulia. 3. CIT (A), NFAC, Delhi. 4. CIT, 5. CIT(DR), True Copy By Order Assistant Registrar, ITAT, Kolkata "