Pushpagiri Medical Society, Thiruvalla V. DCIT, Thiruvalla

ITA 1/COCH/2013

• Counselvise Citation: [2016] 133 COUNSELVISE.COM (IT) 7476 (ITAT-COCHIN)
• Duration Of Justice: 3 year(s) 1 month(s) 30 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 02-03-2016
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: DB
• Next Hearing Date: 01-03-2016
• Assessment Year: 2001-2002
• Appeal Filed On: 03-01-2013
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: K P GOPAKUMAR
• Keywords: Charitable institution
• Section: 260A; 147; 68

Judgement Text

ITA NO . 01/C/2013 1 IN THE INCOME TAX APPEL L A TE T R IBUNAL COCHIN BENCH , COCHIN BEFORE S/SH RI B P JAIN , A M & G EORGE GEORGE.K , J M ITA NO . 01/COCH/2013 (ASST YEAR 2001 - 02 ) PUSHPAGIRI MEDICAL SOCIETY THIRUVALLA VS THE DY COMMR OF INCOME TAX CIRCLE 1 THIRUVALLA ( APPELLANT) ( RESPONDENT) PAN NO. AAATP2418H ASSESSEE BY SH ABRAHAM K THOMAS REVENUE BY SH K P GOPAKUMAR, SR DR DATE OF HEARING 1 ST MARCH 2016 DATE OF PRONOUNCEMENT 2 ND ARCH 2016 OR D ER PER GEORGE GEORGE. K. J M: THIS APPEAL, AT THE INSTANCE OF THE ASS ESSEE, IS DIRECTED AGAINST THE CIT(A)S ORDER DATED 7 TH NOV 2012. THE RELEVANT ASSESSMENT YEAR IS 2001 - 02. 2 THE SOLITARY ISSUE THAT ARISES FOR OUR CONSIDERATION IS WHETHER THE CIT(A) IS JUSTIFIED IN CONFIRMING THE PENALTY IMPOSED BY THE AO U/S 271(1)( C ) OF THE ACT . 3 THE BRIEF FACTS OF THE CASE ARE AS FOLLOWS: THE ASSESSMENT U/S 143 R.W.S 147 OF THE ACT WAS COMPLETED VIDE ORDER DATED 29.12.2008 BY MAKING AN ADDITION U/S 68 OF THE ACT AMOUNTING TO ITA NO . 01/C/2013 2 RS.35,60,875/ - . THE ADDITION U/S 68 WAS CONFIRMED BY THE TRIBUNAL AND THE SAME IS PENDING IN APPEAL BEFORE THE HON BLE HIGH COURT U/S 260A OF THE ACT. 4 BASED ON THE ADDITION SUSTAINED IN THE QUANTUM ASSESSMENT, THE AO IMPOSED PENALTY U/S 271(1)( C) OF THE A CT AMOUNTING TO RS. 12,19,416/ - . ON FURTHER APPEAL, THE PE NALTY WAS CONFIRMED BY THE FIRST APPELLATE AUTHORITY. 5 THE ASSESSEE BEING AGGRIEVED IS IN APPEAL BEFORE US. THE PRAYER RAISED IN THE PRESENT APPEAL ARE AS FOLLOWS: 1 . THE INCOME SO ADDED FOR ASSESSMENT UNDER SECTION 68 IS NOT CHARGEABLE TO TAX BEING EXEMPT U/S 10(23C) SINCE THE ASSESSEE IS A NON - PROFIT MAKING CHARITABLE INSTITUTION SOLELY ENGAGED IN EDUCATIONAL AND PHILANTHROPIC ACTIVITIES. 2 . THE APPELLANT SOCIETY HAS VERY CLEARLY EXPLAINED ALL THE DETAILS REGARDING THE SOURCE OF PERSONAL LOANS. THE SOCIETY H AS ALSO BROUGHT TO THE KIND ATTENTION OF THE ASSESSING OFFICER THAT ALL INCOME FROM ALL SOURCES ARE EXEMPT IN THIS CASE. 3 . THE APPELLANT HAS NOT DELIBERATELY CONCEALED ANY INCOME OR FILED INACCURATE PARTICULARS TO EVADE ANY TAX. 4 . THE QUANTUM APPEALS REGARDI NG TREATMENT OF ADDITION U/S 68 IS ADMITTED IN APPEAL BY THE HON'BLE HIGH COURT OF KERALA. 5 . AND FOR THE REASONS STATED IN THE PRECEDING PARAGRAPHS ABOVE . 5.1 THE LD COUNSEL FOR THE ASSESSEE SUBMITTED THAT THE ADDITION MADE IN THE QUANTUM ASSESSMENT IS SU BJECT MATTER OF APPEAL BEFORE THE HONBLE HIGH COURT AND PRAYED THAT THE PRESENT PENALTY MATTER MAY BE ADJOURNED TILL THE HON BLE H I GH COURT DECIDE D THE QUANTUM ASSESSMENT . ITA NO . 01/C/2013 3 5.2 THE LD DR HAD GIVEN A BR IEF NOTE WHEREIN IT IS STATED THAT THE CONCEALMENT HAS BEEN CLEARLY ESTABLISHED BY THE AO AND THEREFO RE, THE PENALTY WAS WARRANTED U/S 271(1)( C) OF THE ACT. 6 WE HAVE HEARD THE RIVAL PARTIES AND PERUSED THE MATERIAL ON RECORD. ADMITTEDLY, IN THE INST ANCE CASE, THE QUANTUM ASSESSMENT IS PENDING BEFORE THE HONBLE HIGH COURT. W E ARE OF THE VIEW THAT THE PENALTY MATTER IS TO BE RESTORED TO THE AO . THE AO SHALL DECIDE THE PENALTY MATTER, SUBJECT TO THE OUTCOME OF THE QUANTUM ASSESSMENT , WHICH IS TO BE DECIDED BY THE HONBLE HIGH COURT . IT IS ORDERED ACCORDINGLY. 7 IN THE RESULT, THE APPEAL FILED BY THE ASSESSEE IS ALLOWED FOR STATISTICAL PURPOSE. ORDER PRONOUNCED IN THE OPEN COURT ON THIS 2 ND DAY OF MARCH 2016 . SD/ - SD/ - ( B P JAIN ) ( GEORGE GEORGE K ) ACCOUNTANT MEMBER JUDICIAL MEMBE R COCHIN: DATED 2 ND MARCH 2016 RAJ* ITA NO . 01/C/2013 4 COPY TO: 1 . APPELLANT 2 . RESPONDENT 3 . CIT(A) 4 . CIT , 5 . DR 6 . GUARD FILE BY ORDER ASSISTANT REGISTRAR ITAT, COCHIN