DAR E IMAAN WELFARE AND EDUCATIONAL TRUST,VELLORE V. ITO, EXEMPTION WARD-1, CHENNAI

ITA 2588/CHNY/2025

AI Insights

The case involves M/s. DAR E Imaan Welfare and Educational Trust, a public religious trust, which faced a penalty under section 271AAC(1) of the Income Tax Act, 1961, amounting to Rs.13,388. This penalty was linked to an addition made under section 69C during the assessment year 2019-20. The Trust's initial appeal against the quantum assessment was dismissed, and the penalty was confirmed by the First Appellate Authority (FAA). However, a subsequent appeal to the Tribunal resulted in the deletion of the addition under section 69C, which directly impacted the validity of the penalty. The Tribunal, upon reviewing the circumstances and the deletion of the initial addition, decided to delete the penalty as well.

• Counselvise Citation: [2026] 140 COUNSELVISE.COM (IT) 836329 (ITAT-CHENNAI)
• Duration Of Justice: 4 month(s) 26 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 13-02-2026
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Assessment Year: 2019-2020
• Appeal Filed On: 18-09-2025
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: GOUTHAMI MANIVASAGAM

Judgement Text

"आयकर अपीलȣय अͬधकरण, ‘बी’ Ûयायपीठ, चेÛनई IN THE INCOME TAX APPELLATE TRIBUNAL ‘B’ BENCH, CHENNAI Įी जॉज[ जॉज[ क े, उपाÚय¢ एवं Įी इंटूरȣ रामा राव, लेखा सदèय क े सम¢ BEFORE SHRI GEORGE GEORGE K, VICE PRESIDENT AND SHRI INTURI RAMA RAO, ACCOUNTANT MEMBER आयकर अपील सं./ITA No.: 2588/CHNY/2025 िनधाᭅरण वषᭅ/Assessment Year: 2019-20 M/s. DAR E Imaan Welfare and Educational Trust, No.43/1, G, Kayide Millath Nagar, Kathiyavadi, Melvisharam, Vellore – 632 5019. PAN: AACTD 2327B Vs. The Income Tax Officer, Exemption, Ward – 1, Chennai. (अपीलाथᱮ/Appellant) (ᮧ᭜यथᱮ/Respondent) अपीलाथᱮ कᳱ ओर से/Appellant by : None ᮧ᭜यथᱮ कᳱ ओर से/Respondent by : Ms. Gouthami Manivasagam, Addl.CIT सुनवाई कᳱ तारीख/Date of Hearing : 12.02.2026 घोषणा कᳱ तारीख/Date of Pronouncement : 13.02.2026 आदेश/ O R D E R PER GEORGE GEORGE K, VICE PRESIDENT: This appeal filed by the assessee is directed against the order of Commissioner of Income Tax (Appeals), National Faceless Appeal Centre (NFAC), Delhi dated 06.08.2025 passed under section 250 of the Income Tax Act, 1961 (hereinafter called ‘the Act’). The relevant Assessment Year is 2019-20. Printed from counselvise.com ITA No.2588/Chny/2025 :- 2 -: 2. The solitary issue that is raised is whether the First Appellate Authority (FAA) is justified in confirming the penalty imposed u/s.271AAC(1) of the Act amounting to Rs.13,338/-. 3. Brief facts of the case are as follows: The assessee is a public religious trust registered u/s.12A of the Act. For the assessment year 2019-20, assessment u/s.143(3) of the Act was completed in the case of the assessee trust vide order dated 12.02.2021. In the said assessment order, addition u/s.69C of the Act amounting to Rs.2,23,149/- was made. Penalty u/s.271AAC of the Act amounting to Rs.13,388/- was imposed on said addition made u/s.69C of the Act vide order dated 27.08.2021. 4. Aggrieved by the order of penalty imposed u/s.271AAC(1) of the Act, assessee trust filed appeal before the FAA. The FAA noticed that appeal filed by the assessee as against quantum assessment has been dismissed by the first appellate order dated 11.07.2025. Further the FAA observed that assessee has not contested the penalty on merits. Accordingly, the order imposing penalty u/s.271AAC(1) of the Act amounting to Rs.13,388/- was confirmed. 5. Aggrieved by the FAA order, assessee has filed the present appeal. None was present on behalf of the assessee. However, we Printed from counselvise.com ITA No.2588/Chny/2025 :- 3 -: noticed as against the quantum assessment, assessee had filed further appeal and Tribunal in ITA No.2259/CHNY/2025 vide its order dated 28.10.2025 had deleted addition made u/s.69C of the Act. 6. The Ld.DR was duly heard. 7. We heard the Ld.DR and perused the material on record. The penalty u/s.271AAC(1) of the Act was imposed on the basis of quantum addition made u/s.69C of the Act. Since the Tribunal has deleted the addition made u/s.69C of the Act, penalty order which arises from the order of quantum assessment does not survive. Hence, the penalty amounting to Rs.13,388/- u/s.271AAC(1) of the Act is deleted. It is ordered accordingly. 8. In the result, the appeal filed by the assessee is allowed. Order pronounced in the open court on 13th February, 2026 at Chennai. Sd/- Sd/- (इंटूरȣ रामा राव) (INTURI RAMA RAO) लेखा सदèय/ACCOUNTANT MEMBER (जॉज[ जॉज[ क े) (GEORGE GEORGE K) उपाÚय¢ /VICE PRESIDENT चे᳖ई/Chennai, ᳰदनांक/Dated, the 13th February, 2026 RSR Printed from counselvise.com ITA No.2588/Chny/2025 :- 4 -: आदेश कȧ ĤǓतͧलͪप अĒेͪषत/Copy to: 1. अपीलाथȸ/Appellant 2. Ĥ×यथȸ/Respondent 3. आयकर आयुÈत /CIT, Chennai 4. ͪवभागीय ĤǓतǓनͬध/DR 5. गाड[ फाईल/GF. Printed from counselvise.com "