CHINTPURNI SCHOOL EDUCATIONAL SOCIETY,MUMBAI V. DCIT, CENTRAL CIRCLE 1(2), MUMBA

ITA 6591/MUM/2024

AI Insights

The case involves the Chintpurni School Educational Society appealing against the penalties imposed by the Assessing Officer under section 271(1)(c) of the Income-tax Act, 1961, for the assessment years 2012-13 to 2020-21. The penalties were based on additions made in the assessment orders, which the assessee contested, claiming that the additions were not sustainable as they were made without any incriminating material and were merely on an estimate basis. The Tribunal noted the assessee's failure to provide documentary evidence to support its claims during the initial proceedings and decided to allow the appeals for statistical purposes, providing an opportunity for the assessee to present the necessary evidence in subsequent proceedings.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 46964 (ITAT-MUMBAI)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 08-04-2025
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: C
• Assessment Year: 2020-2021
• Laws Referred To: Income-tax Act, 1961
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: VRANDA MATKARI
• Assessee Lawyers: RAKESH JOSHI
• Section: 143(3); 250; 271(1)(c); 153A; 13; 15

Judgement Text

"IN THE INCOME TAX APPELLATE TRIBUNAL MUMBAI BENCH “C” MUMBAI BEFORE SHRI OM PRAKASH KANT (ACCOUNTANT MEMBER) AND SHRI RAHUL CHAUDHARY (JUDICIAL MEMBER) ITA Nos. 6583 to 6591/MUM/2024 Assessment Years: 2012-13 to 2020-21 Chintpurni School Educational Society, Village Bungal, Tehsil Pathankot Gurdaspur, Punjab-145001. Vs. DCIT-Central Circle 1(2), 906, 9th floor, Pratishtha Bhavan, Old CGO Annexe, M.K. Road, Mumbai-400020. PAN NO. AABTC 1007 G Appellant Respondent Assessee by : Mr. Rakesh Joshi Revenue by : Ms. Vranda Matkari, Sr. DR Date of Hearing : 07/04/2025 Date of pronouncement : 08/04/2025 ORDER PER BENCH These appeals by the assessee are directed against separate orders passed by the Ld. Commissioner of Income-tax (Appeals)-47, Mumbai [in short ‘the Ld. CIT(A)’] for assessment years 2012-13 to 2020-21, in relation to penalty u/s 271(1)(c) of the Income-tax Act, 1961 (in short ‘the Act’). As common issue in dispute of penalty levied by the Assessing Officer is disputed in all these appeals, therefore, same were heard together and disposed off by way of this consolidated order. 2. We have heard rival submissions of the parties and perused the relevant materials on record assessee has filed an additional ground in all these appeals as under: 1) The Learned CIT(A) has erred in confirming the action of the Learned Assessing officer in levying penalty on the addition made in the assessment order, without appreciating the fact that these addition itself are not sustainable in the order passed u/s. 143(3) r.w.s 153A of the Income 3. Before us, the ld. counsel for the assessee submitted that no incriminating material and additions have Therefore, the addition itself is not sustainable in law though the assessee did not dispute the addition in quantum proceedings. The Ld. counsel for the assessee accordingly submitted that penalty levied by the AO is not sustainable, b incriminating material as well as basis. But we find that the Ld. CIT(A) qua the assessee as the assessee failed to furnish evidence in support of its contention. The relevant part of the finding of the Ld. CIT(A) in assessment year 2012 as under: “6.0 Opportunity of hearing granted: Chintpurni School Educational Society ITA Nos. 6583 to 6591/MUM/2024 therefore, same were heard together and disposed off by way of this We have heard rival submissions of the parties and perused the relevant materials on record. Before us, the Ld. counsel for the s filed an additional ground in all these appeals as 1) The Learned CIT(A) has erred in confirming the action of the Learned Assessing officer in levying penalty on the addition made in the assessment order, without appreciating the fact addition itself are not sustainable in the order passed u/s. 143(3) r.w.s 153A of the Income Tax Act, Before us, the ld. counsel for the assessee submitted that no incriminating material has been referred in the assessment order been made merely on the estimate basis. Therefore, the addition itself is not sustainable in law though the assessee did not dispute the addition in quantum proceedings. The Ld. counsel for the assessee accordingly submitted that penalty is not sustainable, both on the ground of no incriminating material as well as addition made on the estimate ut we find that the Ld. CIT(A) has passed the order ex the assessee failed to furnish any documentary support of its contention. The relevant part of the finding of the Ld. CIT(A) in assessment year 2012-13 is reproduced “6.0 Opportunity of hearing granted: Chintpurni School Educational Society 2 ITA Nos. 6583 to 6591/MUM/2024 therefore, same were heard together and disposed off by way of this We have heard rival submissions of the parties and perused . Before us, the Ld. counsel for the s filed an additional ground in all these appeals as 1) The Learned CIT(A) has erred in confirming the action of the Learned Assessing officer in levying penalty on the addition made in the assessment order, without appreciating the fact addition itself are not sustainable in the order Act, 1961. Before us, the ld. counsel for the assessee submitted that no referred in the assessment order been made merely on the estimate basis. Therefore, the addition itself is not sustainable in law though the assessee did not dispute the addition in quantum proceedings. The Ld. counsel for the assessee accordingly submitted that penalty oth on the ground of no ion made on the estimate passed the order ex-parte any documentary support of its contention. The relevant part of the 13 is reproduced 6.1 During the course of appellate proceedings, a number of hearing notices u/s 250 of th is pertinent that in order to decide this appeal in a timely manner a number of notices/ communications through ITBA portal were sent to the appellant, viz. communications dated 16.05.2023, 07.06.2023, 14.09.2023, 26. 01.12.2023, 22.12.2023. However, there has been no response from the appellant till date except the written note filed on appeal matter. There is no gainsaying that once the appeal is filed by the appellant, it is obligator operatively pursue the same in a worthwhile manner, which the appellant has evidently failed to do. It clearly appears that the appellant has not bothered to pursue this appeal in any productive manner. Hence, in view o appeal is adjudicated and disposed off, on the basis documents/details available on record, which is as under. 6.2 I have carefully perused the facts of the appellant's case and the order of the Assessing Officer. It is observe the case that the appellant has failed to furnish any documentary evidence to the issue raised by him in the appeal in connection with penalty levied by the AO on additions made on account of receipt of Rs 4,10,00,000/ facts, I decide the appeal on the basis of facts mentioned by AO in the penalty order and facts submitted by appellant as note on appeal matter alongwith 3.1 The Ld. counsel for the assessee gave an assessee will file all the documentary evidence and shall be represented before the Ld. CIT(A) if the matter is restored back to him. We find that in the case no original return of income was filed and only returns were In the facts and circumstances of the case and in the interest of substantial justice, we feel it appropriate to provide one more opportunity to the assessee to file all necessary documentary evidence to support its claim. The assessee shall raise the additional ground before the Ld. CIT(A) which will be admitted/adjudicated in accordance with law. It is needless to Chintpurni School Educational Society ITA Nos. 6583 to 6591/MUM/2024 6.1 During the course of appellate proceedings, a number of hearing notices u/s 250 of the Act were issued to the appellant. It is pertinent that in order to decide this appeal in a timely manner a number of notices/ communications through ITBA portal were sent to the appellant, viz. communications dated 16.05.2023, 07.06.2023, 14.09.2023, 26.09.2023, 09.10.2023, 19.10.2023, 01.12.2023, 22.12.2023. However, there has been no response from the appellant till date except the written note filed on appeal matter. There is no gainsaying that once the appeal is filed by the appellant, it is obligatory on its part to purposefully and co operatively pursue the same in a worthwhile manner, which the appellant has evidently failed to do. It clearly appears that the appellant has not bothered to pursue this appeal in any productive manner. Hence, in view of the aforesaid, the instant appeal is adjudicated and disposed off, on the basis documents/details available on record, which is as under. I have carefully perused the facts of the appellant's case and the order of the Assessing Officer. It is observed from the facts of the case that the appellant has failed to furnish any documentary evidence to the issue raised by him in the appeal in connection with penalty levied by the AO on additions made on account of receipt of Rs 4,10,00,000/-. Considering the facts, I decide the appeal on the basis of facts mentioned by AO in the penalty order and facts submitted by appellant as note on appeal matter alongwith Form No. 35.” . counsel for the assessee gave an undertaking that all the documentary evidence and shall be represented before the Ld. CIT(A) if the matter is restored back to him. We find that in the case no original return of income was filed and only returns were filed in response to section 15 cts and circumstances of the case and in the interest of substantial justice, we feel it appropriate to provide one more opportunity to the assessee to file all necessary documentary evidence to support its claim. The assessee shall the additional ground before the Ld. CIT(A) which will be admitted/adjudicated in accordance with law. It is needless to Chintpurni School Educational Society 3 ITA Nos. 6583 to 6591/MUM/2024 6.1 During the course of appellate proceedings, a number of e Act were issued to the appellant. It is pertinent that in order to decide this appeal in a timely manner a number of notices/ communications through ITBA portal were sent to the appellant, viz. communications dated 16.05.2023, 09.2023, 09.10.2023, 19.10.2023, 01.12.2023, 22.12.2023. However, there has been no response from the appellant till date except the written note filed on appeal matter. There is no gainsaying that once the appeal is filed by the y on its part to purposefully and co- operatively pursue the same in a worthwhile manner, which the appellant has evidently failed to do. It clearly appears that the appellant has not bothered to pursue this appeal in any f the aforesaid, the instant appeal is adjudicated and disposed off, on the basis documents/details available on record, which is as under. I have carefully perused the facts of the appellant's case and d from the facts of the case that the appellant has failed to furnish any documentary evidence to the issue raised by him in the appeal in connection with penalty levied by the AO on additions made on . Considering the above facts, I decide the appeal on the basis of facts mentioned by AO in the penalty order and facts submitted by appellant as note on undertaking that all the documentary evidence and shall be represented before the Ld. CIT(A) if the matter is restored back to him. We find that in the case no original return of income was filed filed in response to section 153A of the Act. cts and circumstances of the case and in the interest of substantial justice, we feel it appropriate to provide one more opportunity to the assessee to file all necessary documentary evidence to support its claim. The assessee shall be at liberty to the additional ground before the Ld. CIT(A) which will be admitted/adjudicated in accordance with law. It is needless to mention that both the assessee and the Assessing Officer shall be afforded adequate opportunity have been heard. The grounds raised by the assessee are allowed for statistical purposes. 4. In the result, all the appeals of the assessee are allowed for statistical purposes. Order pronounced in the open Court on Sd/ (RAHUL CHAUDHARY JUDICIAL MEMBER Mumbai; Dated: 08/04/2025 Rahul Sharma, Sr. P.S. Copy of the Order forwarded to 1. The Appellant 2. The Respondent. 3. CIT 4. DR, ITAT, Mumbai 5. Guard file. //True Copy// Chintpurni School Educational Society ITA Nos. 6583 to 6591/MUM/2024 mention that both the assessee and the Assessing Officer shall be afforded adequate opportunity have been heard. The grounds raised the assessee are allowed for statistical purposes. In the result, all the appeals of the assessee are allowed for nounced in the open Court on 08/04/2025. Sd/- Sd/ (RAHUL CHAUDHARY) (OM PRAKASH KANT JUDICIAL MEMBER ACCOUNTANT MEMBER Copy of the Order forwarded to : BY ORDER, (Assistant Registrar) ITAT, Mumbai Chintpurni School Educational Society 4 ITA Nos. 6583 to 6591/MUM/2024 mention that both the assessee and the Assessing Officer shall be afforded adequate opportunity have been heard. The grounds raised In the result, all the appeals of the assessee are allowed for /04/2025. Sd/- OM PRAKASH KANT) ACCOUNTANT MEMBER BY ORDER, (Assistant Registrar) ITAT, Mumbai "