ITO, Barnala V. Sant Baba Sunder Singh Canadian Charitable Trust, Barnala

ITA 705/CHANDI/2014

• Counselvise Citation: [2016] 132 COUNSELVISE.COM (IT) 9910 (ITAT-CHANDIGARH)
• Duration Of Justice: 1 year(s) 10 month(s) 7 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 14-06-2016
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: SMC
• Next Hearing Date: 10-03-2016
• Assessment Year: 2008-2009
• Appeal Filed On: 07-08-2014
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: S K MITTAL
• Keywords: Charitable institution; Tax effect
• Section: 68

Judgement Text

1 IN THE INCOME TAX APPELLATE TRIBUNAL DIVISION BENCH, CHANDIGARH BEFORE SHRI H.L. KARWA, HONBLE VICE PRESIDENT AND MS. ANNAPURNA GUPTA, ACCOUNTANT MEMBER ITA NO.705/CHD/2014 ASSESSMENT YEAR : 2008-09 THE ITO VS. SANT BABA SUNDER SINGH CANADIAN BARNALA CHARITABLE TRUST,VPO TALLEWAL BARNALA PAN NO. AAETS3552P (APPELLANT) (RESPONDENT) APPELLANT BY : SH. S.K. MITTAL RESPONDENT BY : SH. RAJIV SALDI DATE OF HEARING : 08/04/16 DATE OF PRONOUNCEMENT : 14/06/16 ORDER PER ANNAPURNA GUPTA, A.M. THIS APPEAL FILED BY THE REVENUE IS DIRECTED AGAINS T THE ORDER OF CIT(A), PATIALA, RELATING TO ASSESSMENT YEARS 2 008-09 DT. 29/05/2014. 2. THE REVENUE HAS RAISED THE FOLLOWING GROUNDS: 1. IN THE FACTS AND CIRCUMSTANCES OF THE CASE AND I N LAW, THE LD. CIT(A)HAS ERRED IN DELETING THE PENALTY OF RS. 4,16 ,784/- IMPOSED UNDER SECTION 271D OF THE INCOME TAX ACT 1961 BY TH E JCIT FOR CONTRAVENTIONS OF THE PROVISIONS OF SECTION 269SS O F THE INCOME TAX ACT 1961, WITHOUT APPRECIATING THAT THE ASSESSMENT AND PENALTY PROCEEDINGS ARE SEPARATE FROM EACH OTHER AND ACCEPT ING OF CASH LOANS ATTRACTS PENAL ACTION. 2. IN THE FACTS AND CIRCUMSTANCES OF THE CASE AND I N LAW, THE LD. CIT(A) HAS ERRED IN DELETING THE PENALTY OF RS. 4,1 6,784/- IMPOSED U/S 271D OF THE INCOME TAX ACT 1961 BY PLACING RELI ANCE ON THE FACT THAT THE AMOUNT OF RS. 4,16,784/- HAS ALREADY BEEN ADDED UNDER SECTION 68 IN THE ASSESSMENT ORDER WHICH WAS CONFIRMED BY THE LD. CIT(A) PATIALA, WHEREAS THE ASSESSEE HAS NO T ACCEPTED THE ORDER OF THE LD. CIT(A) CONFIRMING THE ADDITION MAD E UNDER SECTION 68 AND HE HAS ALREADY FILED APPEAL BEFORE THE HONB LE ITAT AGAINST THE ORDER, WHICH IS STILL PENDING. 3. IT IS PRAYED THAT THE ORDER OF LD. CIT(A) BE SET ASIDE AND THAT OF THE AO RESTORED. 2 3. WE HAVE HEARD BOTH THE PARTIES AND PERUSED THE M ATERIAL PLACED ON RECORD. IT IS OBSERVED THAT IN THIS CAS E THE TAX EFFECT DOES NOT EXCEED THE MONETARY LIMIT OF RS. 10 LAKHS. THUS, IN VIEW OF CIRCULAR NO. 21/2015 DATED 10.12.2015, F.NO. 279/MI SC.142/2007- ITJ(PT), GOVERNMENT. OF INDIA, MINISTRY OF FINANCE, DEPARTMENT OF REVENUE, CENTRAL BOARD OF DIRECT TAXES, THE INSTANT APPEAL DESERVES TO BE TREATED AS WITHDRAWN / NOT PRESSED. VIDE PAR A 10 OF THE ABOVE INSTRUCTIONS, THE CBDT HAS CLARIFIED THAT THI S INSTRUCTION WILL APPLY RETROSPECTIVELY TO PENDING APPEALS AND APPEAL S TO BE FILED HENCEFORTH IN ITAT. THE CBDT HAS FURTHER CLARIFIED THAT THE PENDING APPEALS BEFORE THE TRIBUNAL BELOW THE SPECIFIED TAX LIMITS I.E. RS. 10 LAKHS MAY BE WITHDRAWN / NOT PRESSED BY THE REVENUE . IT IS ALSO OBSERVED THAT THE ISSUE INVOLVED IN THIS APPEAL IS NOT COVERED BY PARA 8 (EXCEPTIONS) OF THE ABOVE INSTRUCTIONS. ACC ORDINGLY, THE APPEAL FILED BY THE REVENUE IS TREATED AS WITHDRAWN / NOT PRESSED. 4. IN THE RESULT, THE APPEAL OF THE REVENUE IS DISM ISSED. ORDER PRONOUNCED IN THE OPEN COURT ON 14/06/16. SD/- SD/- (H.L. KARWA) (ANNAPURNA GUPTA) VICE PRESIDENT ACCOUNTANT MEMBER DATED :14/06/16 AG COPY TO: THE APPELLANT, THE RESPONDENT, THE CIT, TH E CIT(A), THE DR