The Dy. Commissioner of Income Tax (Exemptions), Circle-1, Ahmedabad V. Ahmedabad Urban Development Authority, Ahmedabad

ITA 1906/AHD/2016

• Counselvise Citation: [2018] 126 COUNSELVISE.COM (IT) 5915 (ITAT-AHMEDABAD)
• Duration Of Justice: 1 year(s) 8 month(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 19-03-2018
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: Not Allotted
• Assessment Year: 2010-2011
• Appeal Filed On: 19-07-2016
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: SAURABH SINGH
• Assessee Lawyers: S N SOPARKAR
• Keywords: Charitable institution
• Section: 143(3); 12; 11

Judgement Text

, - IN THE INCOME TAX APPELLATE TRIBUNAL AHMEDABAD BENCH A BEFORE SHRI PRAMOD KUMAR, ACCOUNTANT MEMBER AND SHRI RAJPAL YADAV, JUDICIAL MEMBER ./ ITA NO.1906/AHD/2016 / ASSTT. YEAR: 2010-11 DCIT (EXEMPTIONS) CIR.1, AHMEDABAD. VS. AHMEDABAD URBAN DEVELOPMENT AUTHORITY SARDAR VALLABHBHAI PATEL SANKUL ASHRAM ROAD USMANPURA AHMEDABAD. / (APPELLANT) / (RESPONDENT) REVENUE BY : SHRI SAURABH SINGH, SR.DR ASSESSEE BY : SHRI S.N. SOPARKAR, AR ! / DATE OF HEARING : 13/03/2018 '#$ ! / DATE OF PRONOUNCEMENT: 19/03/2018 %& / O R D E R PER RAJPAL YADAV, JUDICIAL MEMBER: REVENUE IS IN APPEAL BEFORE THE TRIBUNAL AGAINST OR DER OF LD.CIT(A)-XXI, AHMEDABAD DATED 20.1.2014 PASSED FOR THE ASSTT.YEAR 2010-11. 2. SOLITARY GRIEVANCE OF THE REVENUE IS THAT THE LD .CIT(A) HAS ERRED IN DELEING PENALTY OF RS.101,24,35,800/- WHIC H WAS IMPOSED BY THE AO UNDER SECTION271(1)(C) OF THE INCOME TAX ACT, 1961. ITA NO.1906/AHD/2016 2 3. BRIEF FACTS OF THE CASE ARE THAT THE ASSESSEE HAS FILED ITS RETURN OF INCOME ON 27.9.2010 DECLARING ITS INCOME AT RS.NIL. AN ASSESSMENT ORDER WAS FRAMED UNDER SECTION 143(3) OF THE ACT ON 12.3.2013 DETERMINING TAXABLE INCOME OF THE ASSESSE E AT RS.327,68,11,000/-. THE AO WAS OF THE OPINION THAT THE ASSESSEE HAD CARRIED OUT ACTIVITIES OF ADVANCEMENT OF OTHER GENERAL PUBLIC UTILITY PROVIDED UNDER SECTION 2(15) OF THE ACT. ACCORDING TO THE AO, IT WAS NOT CHARITABLE ACTIVITY AND THE ASSESSEE IS NOT ENTITLED FOR EXEMPTION UNDER SECTION 11(1)(A) OF THE ACT. I N OTHER WORDS, BENEFIT SECTIONS 11 AND 12 OTHERWISE ADMISSIBLE TO THE ASSESSEE WERE DENIED ON ACCOUNT OF DEFINITION OF CHARITABLE PURPOSE PROVIDED IN SECTION 2(15) OF THE INCOME TAX ACT, 19 61. 4. THE LD.COUNSEL FOR THE ASSESSEE AT THE VERY OUTS ET SUBMITTED THAT DISPUTE TRAVELLED TO THE HONBLE GUJARAT HIGH COURT, AND THE HONBLE HIGH COURT HAS HELD THAT THE ASSESSEE IS EN TITLED FOR THE BENEFIT UNDER SECTIONS 11 AND 12. ITS ACTIVITIES A RE TO BE CONSIDERED FOR CHARITABLE PURPOSE. JUDGMENT OF THE HONBLE GUJARAT HIGH COURT IS REPORTED IN 396 ITR 323. IN VIEW OF HONBLE HIGH COURTS DECISION, ADDITION MADE BY THE AO WOUL D NOT SURVIVE AND THEREFORE, THERE CANNOT BE ANY PENALTY UNDER SE CTION 271(1)(C) OF THE ACT. 5. WE FIND THAT SUB-CLAUSE (III) OF SECTION 271(1)( C) PROVIDES MECHANISM FOR QUANTIFICATION OF PENALTY. IT CONTEM PLATES THAT THE ASSESSEE WOULD BE DIRECTED TO PAY A SUM IN ADDITION TO TAXES, IF ANY, PAYABLE HIM, WHICH SHALL NOT BE LESS THAN, BUT WHIC H SHALL NOT EXCEED THREE TIMES THE AMOUNT OF TAX SOUGHT TO BE EVADED B Y REASON OF CONCEALMENT OF INCOME AND FURNISHING OF INACCURATE PARTICULARS OF ITA NO.1906/AHD/2016 3 INCOME. IN OTHER WORDS, THE QUANTIFICATION OF THE PENALTY IS DEPENDED UPON THE ADDITION MADE TO THE INCOME OF THE ASSESSE E. SINCE BASIS FOR VISITING THE ASSESSEE WITH PENALTY HAS BEEN EXTINGU ISHED BY THE DECISION OF THE HONBLE GUJARAT HIGH COURT IN THE ASSESSEES CASE CITED SUPRA, WHEREIN IT HAS HELD THAT ASSESSEE IS ENTITLED FOR B ENEFITS UNDER SECTIONS 11 AND 12 OF THE ACT, THE IMPUGNED PENALTY HAS NO L IMB TO STAND, ACCORDINGLY WE ARE OF THE VIEW THAT THE LD.CIT(A) H AS RIGHTLY DELETED THE PENALTY AND THERE IS NO MERIT IN THIS APPEAL OF REV ENUE. 6. IN THE RESULT, APPEAL OF THE REVENUE IS DISMISSE D. ORDER PRONOUNCED IN THE COURT ON 19TH MARCH, 2018. SD/- SD/- (PRAMOD KUMAR) ACCOUNTANT MEMBER (RAJPAL YADAV) JUDICIAL MEMBER AHMEDABAD; DATED 19/03/2018