CHRIST EDUCATIONAL AND WELFARE MINORITY TRUST,PATNA V. CPC, BENGALURU

SA 2/PAT/2025

AI Insights

The case involves Christ Mission Educational and Welfare Minority Trust, which filed stay petitions against the income tax demands for the assessment years 2018-19 to 2021-22. The trust argued that their financial activities, particularly affected by the COVID-19 pandemic, and their compliance with procedural requirements justified a stay on the tax demands. The Income Tax Officer (ITO), Ward-1(1), Patna, was the respondent. The Tribunal considered the trust's submissions and the pre-deposit made by them before granting the stay on the tax demands.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 298649 (ITAT-PATNA)
• Appeal Type: Stay Application
• Pronouncement Date: 17-04-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Assessment Year: 2019-2020
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Right to appeal; Application of stay
• Section: 80P

Judgement Text

"आयकर अपीलीय अधिकरण पटना पीठ, कोलकाता में IN THE INCOME TAX APPELLATE TRIBUNAL PATNA BENCH AT KOLKATA [वर्चुअल कोटु] [Virtual Court] श्री संजय शमाु, न्याधयक सदस्य एवं श्री राक ेश धमश्रा, लेखा सदस्य क े समक्ष Before SHRI SONJOY SARMA, JUDICIAL MEMBER & SHRI RAKESH MISHRA, ACCOUNTANT MEMBER S.A. Nos.: 1 to 4/PAT/2025 Arising out of I.T.A. Nos.: 57 to 60/PAT/2025 Assessment Years: 2018-19 to 2021-22 Christ Mission Educational and Welfare Minority Trust Vs. ITO, Ward-1(1), Patna (Appellant) (Respondent) PAN: AACTC1589L Appearances: Assessee represented by : None. Department represented by : Ashwani Kr. Singal, JCIT. Date of concluding the hearing : April 4th, 2025 Date of pronouncing the order : April 17th, 2025 ORDER PER RAKESH MISHRA, ACCOUNTANT MEMBER: The assessee has filed the Stay Petitions as under: SA No. ITA No. 1/PAT/2025 57/PAT/2025 Page | 2 S.A. Nos.: 1 to 4/PAT/2025 Arising out of I.T.A. Nos.: 57 to 60/PAT/2025 Assessment Years: 2018-19 to 2021-22 Christ Mission Educational and Welfare Minority Trust. 2/PAT/2025 58/PAT/2025 3/PAT/2025 59/PAT/2025 4/PAT/2025 60/PAT/2025 Since the issues are common therefore, all these petitions were taken together and were heard together and are being decided vide this common order for the sake of convenience and brevity. 2. None appeared on behalf of the assessee at the time of hearing and the applications were heard with the assistance of the Ld. Sr. DR. 3. We will first take up the application SA No. 1/PAT/2025 in 57/PAT/2025. It is observed that the assessee, vide letter dated 12.02.2025 placed on file, has mentioned as under: “1. That it is stated and submitted that the appellant is a trust who undertakes activities micro-business of cottage industries and schooling of poor children with the cooperation of qualified teachers and deserve allowance of deduction under Section 80 P of the Income Tax Act, 1961 as such appellant has prima- facie arguable case. 2. That it stated and submitted that owing to spread devastating Covid Pandemic, business activities of the appellant has been crippled since early 2020 thus the appellant has been facing acute financial crisis since then. 3. That it stated and submitted that owing inadvertent failure in procedural compliances on the part of appellant has caused a huge demand of Income tax, amounting to Rs 34,30230.00 in Assessment Year 2018-19. 4. That it is stated and submitted that Appellant is entitled for the deduction of Section 80P of the Income Tax Act, 1961 but it has been denied in the Original Assessment Order, thus balance is in favour of the Appellant. 5. That it is stated and submitted that appellant has already deposited 20% pre-deposit, Rs 276280.00 before exercising his right to appeal. 6. That it is stated and submitted that appellant shall be facing undue hardship in complying the instant demand by way of (sic) 7. That it is stated and submitted that if Hon'ble Tribunal stays the demand, there would be no loss of revenue. Page | 3 S.A. Nos.: 1 to 4/PAT/2025 Arising out of I.T.A. Nos.: 57 to 60/PAT/2025 Assessment Years: 2018-19 to 2021-22 Christ Mission Educational and Welfare Minority Trust. 8. That it is stated and submitted that the appellant deserves a lenient view of Hon'ble Tribunal in this regard. Prayer It is therefore prayed that Your Lordships be pleased to stay the demand of Rs 11,05120.00 vide Letter No ITBA/COM/F/17/2024-25/1071980569(1) OF Pass such order/s Your Lordships deem fit and proper.” 4. Further, vide submission filed on 07.03.2025, it is submitted that the assessee has a prima facie arguable case for the stay of the recovery of income tax as it has already deposited 20% pre-deposit amount amounting to Rs.21,76,208/- wide challan No. 13,943 dated 21.02.2024 in relation to A.Y. 2018-19 and filed a photocopy of the challan. Thus, it has requested for staying the demand of Rs.11,05,120/-. Since the assessee has paid a sum of Rs. 2,76,280/- and the demand outstanding was Rs. 11,05,120/-, hence, the Stay Petition is allowed and the rest of the demand is stayed for a period of 6 months or disposal of the appeal, whichever is earlier, subject to the following conditions: i) The assessee shall move an application for early hearing of the appeals before the Tribunal. ii) Subject to the verification of the payment of the demand as in para 4 by the Ld. AO, the rest of the demand shall be stayed for a period of 180 days or till the disposal of the appeal, whichever is earlier. iii) No adjournment shall be sought by the assessee in the appeal before the Tribunal unless it is absolutely necessary on account of any exigency or unavoidable circumstances. Page | 4 S.A. Nos.: 1 to 4/PAT/2025 Arising out of I.T.A. Nos.: 57 to 60/PAT/2025 Assessment Years: 2018-19 to 2021-22 Christ Mission Educational and Welfare Minority Trust. 5. In the other three assessment years, the sums paid and the outstanding demands are as under for which necessary challans have been filed: Sl. No. Assessment Year Pre-deposit Amount Outstanding Demand 1 AY 2019-20 Rs. 3,31,790/- Rs. 13,27,150/- 2 AY 2020-21 Rs. 2,65,792/- Rs. 10,63,168/- 3 AY 2021-22 Rs. 1,28,360/- Rs. 5,13,410/- 6. Since in all the other 3 assessment years as well, the assessee has already deposited 20% of the outstanding demand, the rest of the demand in all these years as well is also stayed subject to the conditions as stipulated above. 7. In the result, all the Stay Applications filed by the assessee are allowed. Order pronounced in the open Court on 17th April, 2025. Sd/- Sd/- [Sonjoy Sarma] [Rakesh Mishra] Judicial Member Accountant Member Dated: 17.04.2025 Bidhan (P.S.) Page | 5 S.A. Nos.: 1 to 4/PAT/2025 Arising out of I.T.A. Nos.: 57 to 60/PAT/2025 Assessment Years: 2018-19 to 2021-22 Christ Mission Educational and Welfare Minority Trust. Copy of the order forwarded to: 1. Christ Mission Educational and Welfare Minority Trust, Nandan Pure Maurya Path, Rupaspur Post Khajpura, Rukanpura, Patna, Bihar, 800014. 2. ITO, Ward-1(1), Patna. 3. CIT(A)-NFAC, Delhi. 4. CIT- 5. CIT(DR), Patna Bench, Patna. 6. Guard File. //True copy // By order Assistant Registrar ITAT, Kolkata Benches Kolkata "