BIRKODAR PRAMILA CHARITABLE TRUST,JAMSHEDPUR V. ITO EXEMPTION, JAMSHEDPUR

ITA 125/RAN/2023

AI Insights

The case involves the Birkodar Pramila Charitable Trust, which appealed against a penalty imposed under section 271B of the Income Tax Act for the late filing of an audit report for the assessment year 2016-17. The Trust, which operates educational institutions, filed its audit report six months late due to the health issues of a trustee's husband, which required frequent medical trips. The NFAC upheld the penalty, not accepting the reasons for the delay. The Tribunal, however, found merit in reconsidering the Trust's circumstances and directed the NFAC to re-evaluate the case with a focus on the provided reasons for the delay.

• Counselvise Citation: [2024] 140 COUNSELVISE.COM (IT) 472707 (ITAT-RANCHI)
• Duration Of Justice: 1 year(s) 4 month(s) 21 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 14-10-2024
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB
• Assessment Year: 2016-2017
• Appeal Filed On: 23-05-2023
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: P. K. KOLEY
• Keywords: Charitable institution
• Section: 143(3); 250; 12AA; 273B; 271B

Judgement Text

" आयकर अपीऱीय अधिकरण, र ाँची न्य यपीठ, र ाँची IN THE INCOME TAX APPELLATE TRIBUNAL RANCHI BENCH, RANCHI BEFORE SHRI PARTHA SARATHI CHAUDHURY, JM AND SHRI PRABHASH SHANKAR, AM आयकर अपीऱ सं./ITA No.125/RAN/2023 (निि ारण वषा / Assessment Year :2016-17) Birkodar Pramila Charitable Trust Vs. ITO(Exemption), Jamshedpur स्थायी ऱेखा सं./जीआइआर सं./ PAN/GIR No. : AABTB0348P (अपीऱाथी /Appellant) : (प्रत्यथी / Respondent) Appellant by : None Respondent by : Shri P. K. Koley, Sr. DR सुनवाई की तारीख / Date of Hearing : 03/10/2024 घोषणा की तारीख/Date of Pronouncement : 14/10/2024 आदेश / O R D E R Per Partha Sarathi Chaudhury, JM : This appeal preferred by the assessee emanates from the order of NFAC dated 27.03.2023 passed u/s 250 of the Income Tax Act, 1961 (hereinafter referred to as the \"Act\") for Assessment Year 2016-17 as per the grounds of appeal on record. 2. At the time of hearing, none appeared for the assessee. The submissions of the learned. Departmental Representative are recorded and we have given careful consideration to the facts and circumstances of this case and the matter is taken as heard on merits. 3. The relevant fact is that the assessee is a charitable trust and has e-filed its return of income for A.Y 2016-17 on 31.03.2017 declaring total income of ITA No.125/RAN/2023 Assessment Year :2016-17 Birkodar Pramila Charitable Trust 2 ₹9,51,170/-. The case was selected for scrutiny and the assessment finally was completed u/s 143(3) of the Act with the assessed total income at ₹38,18,090/- treating the assessee as an AOP and a penalty order was also passed u/s 271B of the Act. 4. The assessee went on appeal before the learned. CIT(A) against the levy of such penalty. That before the NFAC, the assessee had prayed for deletion of penalty by making the following submissions: \"3.1 In support of these grounds the assessee had submitted the following in the form 35. 1. That the Assessee is a Private Trust running school and filing regular ROl as an AOP paying tax on its Surplus Income. 2. That the Assessee is a Tax auditee and has furnished its Audit report, Audited BS, PL duly audited by a CA for the relevant Assessment Year. 3. That the case of the Assessee for this year was selected for Scrutiny and penalty under Section 271B was initiated for late filing of Audit Report. 4. That the Ld Assessing 'Officer has made an order imposing the penalty u/s 271B of Rs. 1,44,500/- stating the delay in furnishing the audit report w/s 44AB. 5. That Mr. RP Singh, Husband of the Trustee of the Assessee Mrs. Shobha Singh, is Suffering. from Blood Cancer. due to which the Trustee has to frequently take her Husband out-of-station for. medical purpose which leads to delay in filing of Return along with the Audit report. 6. That the intention of the Assessee is a Law abiding Person and has always complied with the provisions of the Act within time. This was only First year when this delay has occurred in filing Return though the Assessee has obtained the audit report well within the statutory time limit prescribed under Section 139(1). 7. That on the basis of above facts and the circumstances of the case it is most respectfully submitted that the penalty imposed may kindly be deleted.\" 4.1 That considering the submissions of the assessee and the assessment order, it was observed and held by the NFAC that as a matter of fact, the assessee-trust manages two units of schools in the name of SBB Vidhya Vihar. That for the year under consideration, the trust was neither registered u/s 12AA nor u/s 10(23C)(vi) of the Act. The assessee had filed its tax audit report on 31.03.2017 instead of ITA No.125/RAN/2023 Assessment Year :2016-17 Birkodar Pramila Charitable Trust 3 30.09.2016, wherein, there had occurred a delay of six months. That the reasons for such delay has been explained by the assessee in its written submissions, however, the NFAC did not agree with the said reasons and had upheld the levy of penalty u/s 271B of the Act. 5. We have given our careful consideration to the facts and circumstances in this case and the relevant documents on record. We have also gone through the submissions of the assessee explaining the delay. Considering the totality of facts and circumstances, we are of the considered view that the NFAC shall consider the submissions placed before it by the assessee regarding the cause of such delay in terms with section 273B of the Act. That after providing reasonable opportunity of hearing to the assessee in this regard, the NFAC shall pass a speaking order as per section 250(4) and (6) of the Act. The assessee is also directed to comply with the notices of hearing before the NFAC. That as per the above terms, the grounds of appeal of the assessee stands allowed for statistical purposes. 6. In the result, the appeal of the assessee is allowed for statistical purposes. Order pronounced in the open court on 14/10/2024. Sd/- Sd/- (Prabhash Shankar) (Partha Sarathi Chaudhury) Accountant Member Judicial Member र ाँची Ranchi; ददनांक Dated: 14/10/2024 RS (on tour) ITA No.125/RAN/2023 Assessment Year :2016-17 Birkodar Pramila Charitable Trust 4 आदेश की प्रनिलऱपप अग्रेपषि/Copy of the Order forwarded to : आदेश िुस र/ BY ORDER, (Senior Private Secretary) On tour, ITAT, Ranchi 1. अपीऱाथी / The Appellant- Birkodar Pramila Charitable Trust, House No.17, Netaji Road, Gandhi Chowk, Vidyapati Nagar, Baridhi, Jamshedpur-831017. 2. प्रत्यथी / The Respondent- ITO(Exemption), Jamshedpur 3. आयकर आयुक्त(अपील) / The CIT(A)- 4. आयकर आयुक्त / CIT 5. विभागीय प्रविविवि, आयकर अपीलीय अविकरण, र ाँची / DR, ITAT, Ranchi 6. गार्ड फाईऱ / Guard file. सत्यापपत प्रतत //True Copy// "