Shri Shaktidham Trust, Baroda V. The Income tax Officer,Ward-5(1), Baroda

ITA 100/AHD/2009

• Counselvise Citation: [2011] 134 COUNSELVISE.COM (IT) 6677 (ITAT-AHMEDABAD)
• Duration Of Justice: 2 year(s) 3 month(s) 27 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 05-05-2011
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: D
• Next Hearing Date: 05-05-2011
• Assessment Year: 1999-2000
• Appeal Filed On: 09-01-2009
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: G D BALVA
• Section: 12A; 11

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL AT AHMEDABAD, D BENCH (BEFORE S/SHRI T.K. SHARMA, JUDICIAL MEMBER AND A.N. PAHUJA, ACCOUNTANT MEMBER) ITA NO.100 TO 104/AHD/2009 [ASSTT. YEAR : 1999-2000 TO 2003-2004] SHRI SHAKTIDHAM TRUST MARU FALIA, NR. WADI TOWER WADI, BARODA. PAN : AAFTS 2847 A VS. ITO, WARD-5(1) BARODA. (APPELLANT) (RESPONDENT) ASSESSEE BY : SHRI JAIMIN GANDHI REVENUE BY : SHRI G.D.BALVA O R D E R PER BENCH : THESE APPEALS ARE FILED BY THE ASSESSEE AGAINST FIV E SEPARATE ORDERS OF THE CIT(A) DATED 3-11-2008 CONFI RMING THE PENALTY LEVIED BY THE AO UNDER SECTION 271(1)(C) OF THE I.T .ACT, AMOUNTING TO RS.4,26,899/-, RS.1,41,832/-, RS.87,415/-, RS.1,54, 030/- AND RS.2,02,294/- FOR THE ASSESSMENT YEARS 1999-2000 TO 2003-2004 RESPECTIVELY. 2. AT THE TIME OF HEARING BEFORE US, LEARNED COUNSE L FOR THE ASSESSEE FILED A COPY OF THE DECISION OF THE ITAT B BENCH IN THE ASSESSEES CASE FOR THE ASSTT.YEARS 1999-2000 TO 2003-2004 IN ITA N O.622- 625/AHD/2008 WHEREIN THE TRIBUNAL IN QUANTUM APPEAL S HELD THAT FUNDS OF THE ASSESSEE-TRUST WERE NOT USED FOR ACTIVITY OT HER THAN OBJECTS OF THE ASSESSEE-TRUST AND DIRECTED THE AO TO ALLOW EXEMPTI ON UNDER SECTION 11 R.W.S. 12 OF THE IT ACT. THE COUNSEL FOR THE ASSES SEE FURTHER EXPLAINED THAT FOR ALL THESE ASSESSMENT YEARS, THE AO DENIED THE EXEMPTION UNDER SECTION 11 R.W.S. 12 OF THE ASSESSEE-TRUST AND COMP UTED THE INCOME AND SUBSEQUENTLY LEVIED PENALTY UNDER SECTION 271(1)(C) OF THE ACT. AFTER ITA NO.100 TO 104/AHD/2009 -2- ALLOWING THE EXEMPTION UNDER SECTION 11 R.W.S. 12A INCOME FOR ALL THESE ASSESSMENT YEARS WILL NOT BE TAXABLE AND THEREFORE, NO PENALTY UNDER SECTION 271(1)(C) IS LEVIABLE. THE LEARNED DR APP EARING FOR THE REVENUE COULD NOT CONTROVERT AFORESAID SUBMISSIONS OF THE L EARNED COUNSEL FOR THE ASSESSEE. 3. AFTER HEARING BOTH THE SIDES, WE HAVE GONE THROU GH THE ORDERS OF THE AUTHORITIES. IT IS WELL SETTLED LAW THAT IN TH OSE CASES WHERE THE ADDITION MADE IN THE ASSESSMENT ORDER ON THE BASIS OF WHICH PENALTY OR CONCEALMENT LEVIED ARE DELETED, THERE REMAINS NO BA SIS AT ALL FOR LEVYING OF PENALTY FOR CONCEALMENT AND THEREFORE IN SUCH A CASE, NO PENALTY CAN SURVIVE AND PENALTY IS LIABLE TO BE CANCELLED. ADM ITTEDLY, IN ALL THESE YEARS, AFTER ALLOWING THE EXEMPTION TO THE ASSESSEE TRUST UNDER SECTION 11 R.W.S. 12, THE PENALTY UNDER SECTION 271(1)(C) WILL NOT SURVIVE. IN VIEW OF THIS, PENALTY LEVIED UNDER SECTION 271(1)(C) IN ALL THE ASSESSMENT YEARS IN APPEAL IS HEREBY CANCELLED. 4. IN RESULT, ALL THE APPEALS OF THE ASSESSEE ARE A LLOWED. ORDER PRONOUNCED IN OPEN COURT ON 5 TH MAY, 2011 SD/- SD/- (A.N. PAHUJA) ACCOUNTANT MEMBER (T.K. SHARMA) JUDICIAL MEMBER PLACE : AHMEDABAD DATE : 05-05-2011 C OPY OF THE ORDER FORWARDED TO: 1) : APPELLANT 2) : RESPONDENT 3) : CIT(A) 4) : CIT CONCERNED 5) : DR, ITAT. BY ORDER DR/AR, ITAT, AHMEDABAD