Shamlaji Pradesh Kelvani Mandal, Sabarkantha V. The ADIT.,(E)S.K.Circle, Himatnagar

ITA 2091/AHD/2012

• Counselvise Citation: 209120514 RSA 2012
• Duration Of Justice: 1 year(s) 3 month(s) 3 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 23-12-2013
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Next Hearing Date: 19-12-2013
• Assessment Year: 2008-2009
• Appeal Filed On: 19-09-2012
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: P L KUREEL
• Assessee Lawyers: GOURAV MEHTA
• Keywords: Charitable institution; Reasonable cause
• Section: 10B

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL AHMEDABAD B BENCH BEFORE: SRI D.K TYAGI, JUDICIAL MEMBER AND SHRI T.R. MEENA, ACCOUNTANT MEM BER SHAMLAJI PRADESH KELAVANI MANDAL AT & PO: SHAMLAJI DIST: SABARKANTHA PAN: AAETS 3542 B (APPELLANT) VS ADIT (E), S.K.CIRCLE, HIMMATNAGAR (RESPONDENT) REVENUE BY: SRI P.L. KUREEL, SR.D.R. ASSESSEE BY: SRI GOURAV MEHTA, A.R. DATE OF HEARING : 19-12-2013 DATE OF PRONOUNCEMENT : 23-12-20 13 / ORDER PER : D.K. TYAGI, JUDICIAL MEMBER:- THIS IS THE ASSESSEES APPEAL AGAINST THE ORDER OF LD. CIT(A)-XXI AHMEDABAD DATED 16-07-2012. ITA NO. 2091/AHD/2012 ASSESSMENT YEAR 2008-09 I.T.A NO.2091/AHD/2012 A.Y. 2008-09 PAGE NO SHAMLAJI PRADESH KELAVANI MANDAL VS. ADIT(E) 2 2. THE ASSESSEE IS AGGRIEVED BY THE ACTION OF LD. C IT(A) IN CONFIRMING THE PENALTY OF RS. 53,000/- LEVIED BY AO U/S. 272A( 2)(E). 3. AO WHILE LEVYING THIS PENALTY HAS OBSERVED AS UN DER:- ASSESSEE IS A CHARITABLE TRUST AS PER PROVISIONS O F SECTION 139(4A) OF THE I.T. ACT AS APPLICABLE IN ASSESSEES CASE, ASSESSEE WAS SUPPOSED TO FILE HIS RETURN OF INCOME ALONG WITH AU DIT REPORT ON OR BEFORE 30-09-2008. ON VERIFICATION OF RECORDS IT W AS NOTICED THAT RETURN OF INCOME FOR A. Y 2008-09 WAS FILED BY AS SESSEE ON 05-03- 2010 FROM THE ABOVE FACTS, IT IS NOTICED THAT THE RETURN OF INCOME WAS FILED BY THE ASSESSEE LATE BY 521 DAYS. .. ASSESSEES REPLY HAS BEEN CAREFULLY CONSIDERED BUT NOT FOUND ACCEPTABLE ON THE GROUNDS MENTIONED BELOW. ASSESSE E SIMPLY STATED THAT DELAY IN FILING OF RETURN IS NOT INTENTIONALLY THEREFORE LIBERAL VIEW MAY BE TAKEN AND DROP THE PENALTY PROCEEDINGS. ASS ESSEE HAS NOT GIVEN ANY REASONABLE CAUSE AND FAILED TO PROVE THAT THERE WAS REASONABLE CAUSE FOR FAILURE AND ALSO FAILED TO JUS TIFY THE REASONS FOR EACH DEFAULT COMMITTED FOR LATE FILING OF THE RETUR N. SUBMISSIONS OF RETURN BY CHARITABLE TRUST IS ESSENTIAL EVEN IF ITS INCOME IS EXEMPT AS HELD IN THE CASE OF LALA GOPIMAL KUTHIALA TRUST VS. ITO 1962 436 ITR (PUNJ). IF THE TOTAL INCOME OF THE CHARITABLE TRUS T (WITHOUT CLAIMING U/S. 11,12, AND 13A) EXCEEDS THE MAXIMUM AMOUNT NOT CHARGEABLE TO TAX THEN SUBMISSIONS OF RETURN BY THE TRUST ESSENTI AL. 4. IN APPEAL THIS ACTION OF AO WAS CONFIRMED BY LD. CIT(A). I.T.A NO.2091/AHD/2012 A.Y. 2008-09 PAGE NO SHAMLAJI PRADESH KELAVANI MANDAL VS. ADIT(E) 3 5. BEFORE US IT WAS ARGUED ON BEHALF OF THE ASSESSE E THAT RETURN COULD NOT BE FILED IN TIME IN THIS CASE AS DUE TO ILLNESS OF THE SECRETARY OF THE TRUST FINALIZATION OF ACCOUNTS AND AUDIT COULD NOT BE COM PLETED IN DUE TIME. AUDIT REPORT U/S. 12AB R.W.S. 17B IN FORM NO. 10B WAS FIN ALIZED ONLY ON 13-02- 2010 AND IMMEDIATELY RETURN WAS FILED ON 15-03-2010 . HE THEREFORE PRAYED THAT SINCE ASSESSEE WAS PREVENTED BY SUFFICIENT CAU SE IN NOT BEING ABLE TO FILE THE RETURN IN TIME PENALTY SHOULD NOT HAVE BEEN LEV IED IN THIS CASE AND THEREFORE PENALTY SO LEVIED AND SUSTAINED BY LD. CI T(A) MAY KINDLY BE DELETED. LD. DR ON THE OTHER HAND VEHEMENTLY SUPPO RTED THE ORDER PASSED BY LOWER AUTHORITIES. 6. AFTER HEARING BOTH THE PARTIES AND PERUSING THE RECORD, WE FIND THAT THERE IS NO DISPUTE ABOUT THE FACT THAT RETURN IN T HIS CASE WAS FILED LATE AND THEREFORE PENALTY PROCEEDINGS U/S. 272A(2)(E) WERE INITIATED AND PENALTY OF RS. 53,000/-WAS IMPOSED. THIS PENALTY WAS CONFIRME D BY LD. CIT(A). BEFORE US SUBMISSION OF THE ASSESSEE WAS THAT RETUR N WAS FILED LATE AS THE ACCOUNTS OF THE TRUST COULD BE FINALIZED AND AUDIT REPORT WAS PREPARED BY THE AUDITORS ONLY ON 13-03-2010 DUE TO ILLNESS OF THE S ECRETARY OF THE TRUST MR. MAHESHBHAI PATEL WHO WAS SUFFERING SINCE 2001 AND W AS ALSO OPERATED WITH BY-PASS SURGERY. IN SUPPORT OF THIS SUBMISSION DOC UMENTS RELATING TO THE ILLNESS AND TREATMENT OF MR. PATEL WERE ALSO FILED. TAKING THIS INTO CONSIDERATION WE ARE OF THE VIEW THAT ASSESSEE WAS PREVENTED BY REASONABLE CAUSE IN NOT BEING ABLE TO FILE HIS INCOME TAX RETU RN IN TIME AND THEREFORE IT WAS NOT A FIT CASE TO IMPOSE PENALTY U/S. 272A(2)(E ) AND THEREFORE PENALTY SO LEVIED BY AO AND SUSTAINED BY LD. CIT(A) IS HEREBY DELETED. I.T.A NO.2091/AHD/2012 A.Y. 2008-09 PAGE NO SHAMLAJI PRADESH KELAVANI MANDAL VS. ADIT(E) 4 7. IN THE RESULT, ASSESSEES APPEAL IS ALLOWED. ORDER PRONOUNCED IN OPEN COURT ON THE DATE MENTIONE D HEREINABOVE AT CAPTION PAGE SD/- SD/- (T.R. MEENA) ( D.K. TYAGI) ACCOUNTANT MEMBER J UDICIAL MEMBER AHMEDABAD : DATED 23/12/2013 AK / COPY OF ORDER FORWARDED TO:- 1. ASSESSEE 2. REVENUE 3. CONCERNED CIT 4. CIT (A) 5. DR, ITAT, AHMEDABAD 6. GUARD FILE. BY ORDER/ , / ,