SMT DAKUBEN SAREMALJI SANCHETI NADOL CHARITABLE TRUST, MUMBAI V. THE INCOME TAX OFFICER WARD 1(2), MUMBAI

ITA 1/MUM/2023

AI Insights

The case involves Smt. Dakuben Saremalji Sancheti Nadol Charitable Trust appealing against a penalty imposed by the Income Tax Officer for non-compliance with statutory notices under the Income Tax Act, 1961. The trust, registered under section 12A, had filed a return declaring nil income for the assessment year 2017-18. Following non-compliance with initial scrutiny notices, a penalty was levied. The trust contested this penalty, arguing lack of resources and awareness of the electronic communication of notices. The Tribunal, considering the trust's circumstances, decided to delete the penalty.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 125894 (ITAT-MUMBAI)
• Duration Of Justice: 4 month(s) 17 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 18-05-2023
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: D
• Next Hearing Date: 28-02-2023
• Assessment Year: 2017-2018
• Appeal Filed On: 01-01-2023
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Charitable institution; Opportunity of being heard
• Section: 273B; 143(3); 142(1); 12A; 274; 143(2)

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL “D” BENCH, MUMBAI BEFORE SHRI PRASHANT MAHARISHI, AM AND MS. KAVITHA RAJAGOPAL, JM IT A N o . 1/ M u m/2 0 23 ( A s s e ss me nt Y ea r: 20 1 7- 18 ) Smt. Dakuben Saremalji Sancheti Nadol Charitable Trust C/o. G.P. Mehta & Co. CAS 807, Tulsiani Chambers, Nariman Point, Mumbai-400 021 V s. Income Tax Officer Ward 1(2) 6 th Floor, MTNL Building Pedder Road, Mumbai-400 026 P A N / G I R N o. AA A T D 7 19 2 E (Appellant) : (Respondent) Assessee by : Shri G. P. Mehta Revenue by : Smt. Mahita Nair D a te o f H e a r i n g : 01.03.2023 D ate of P ro n ou n ce me n t : 19.05.2023 O R D E R Per Kavitha Rajagopal, J M: This appeal has been filed by the assessee, challenging the order of the learned Commissioner of Income Tax (Appeals) (‘ld.CIT(A) for short), National Faceless Appeal Centre (‘NFAC’ for short) u/s.250 of the Income Tax Act, 1961 (‘the Act'), pertaining to the Assessment Year (‘A.Y.’ for short) 2017-18. 2. The solitary issue involved in this appeal is challenging the penalty levied u/s. 272A(1)(d) of the Act, amounting to Rs.10,000/-. It is observed that the assessee has filed the present appeal after a delay of 608 days and the learned Authorised Representative (ld. AR for short) for the assessee submitted that the assessee has filed an Affidavit stating the reason for the delay in filing the appeal within the limitation period. On 2 ITA No. 1 / M u m / 2 0 2 3 ( A . Y . 2 0 1 7 - 1 8 ) Smt. Dakuben Saremalji Sancheti Nadol Charitable Trust vs. ITO perusal of the reason stated by the assessee trust, we are of the considered opinion that the delay in filing the appeal may be condoned due to the sufficient cause, hence, we hereby condone the delay. 3. The brief facts are that the assessee is a charitable trust registered u/s. 12A of the Act and had filed its return of income dated 01.11.2017, declaring total income at Rs.Nil. The assessee’s case was selected for scrutiny and the notice u/s. 143(3) of the Act dated 10.08.2018 was issued and served through email and subsequent notice u/s. 142(1) dated 09.09.2019 was also issued. As the assessee failed to comply with the said show cause notice, the A.O. issued notice dated 10.10.2019 for levying the penalty u/s. 274 r.w.s. 272(2)(1)(d) of the Act. The A.O. levied the penalty of Rs.10,000/- u/s. 272A(1)(d) of the Act for the reason that the assessee has not complied with and has not furnished the required details sought for by the A.O. 4. Aggrieved by the said order, the assessee was in appeal before the ld. CIT(A) who confirmed the impugned penalty for the reason that the assessee has failed to comply with the notice even before the first appellate authority. 5. The assessee is in appeal before us, challenging the order of the ld. CIT(A). 6. We have heard the rival submissions and perused the materials available on record. It is observed that the assessee has been non compliant before the lower authorities in furnishing the details sought for by the A.O. vide notice u/s. 143(2) and 142(1) of the Act. The assessee has also been non compliant before the first appellate authority. The assessee being a public charitable trust, undertaking activities of general 3 ITA No. 1 / M u m / 2 0 2 3 ( A . Y . 2 0 1 7 - 1 8 ) Smt. Dakuben Saremalji Sancheti Nadol Charitable Trust vs. ITO public utility was said to lack sufficient manpower and resources. As per the submission of the ld. AR, the assessee was not given sufficient opportunity of being heard before the lower authorities and consequently penalty amounting to Rs.10,000/- was levied u/s. 272A(1)(d) of the Act. It is observed from the submission of the assessee trust that it was not having computer facility and was unable to get access to the e-notices sent as it was unaware of such notices, the assessee remained ex parte before the authorities. We find that the assessee had reasonable cause for the failure to furnish the details as warranted u/s. 273B of the Act which covered the penalty provision u/s. 272A(1). Hence, we are of the considered view that the impugned penalty levied u/s. 272A(1)(d) of the Act has to be deleted. 7. In the result, the appeal filed by the assessee is allowed. Order pronounced in the open court on 19.05.2023 Sd/- Sd/- (Prashant Maharishi) (Kavitha Rajagopal) Accountant Member Judicial Member Mumbai; Dated : 19.05.2023 Roshani , Sr. PS Copy of the Order forwarded to : 1. The Appellant 2. The Respondent 3. CIT - concerned 4. DR, ITAT, Mumbai 5. Guard File BY ORDER, (Dy./Asstt. Registrar) ITAT, Mumbai