DCIT (Exemption), Ghaziabad V. Friends Charitable Society, Ghaziabad

ITA 7196/DEL/2018

• Counselvise Citation: [2021] 107 COUNSELVISE.COM (IT) 9669 (ITAT-DELHI)
• Duration Of Justice: 2 year(s) 8 month(s) 15 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 29-07-2021
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: B
• Assessment Year: 2010-2011
• Appeal Filed On: 13-11-2018
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: NIDHI SRIVASTAVA
• Keywords: Business income
• Section: 271(1)(c)

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI B BENCH: NEW DELHI (THROUGH VIDEO CONFERENCING ) BEFORE SHRI KUL BHARAT, JUDICIAL MEMBER & SHRI O.P.KANT, ACCOUNTANT MEMBER ITA NO.7196/DEL/2018 ASSESSMENT YEAR : 2010-11 DCIT(EXEMPTION), CIRCLE-GHAZIABAD, ROOM NO.105, 1 ST FLOOR, CGO COMPLEX-II, KAMLA NEHRU NAGAR, GHAZIABAD. VS FRIENDS CHARITABLE SOCIETY, LONI ROAD, MOHAN NAGAR, GHAZIABAD, UTTAR PRADESH. PAN-AAATF0997R APPELLANT RESPONDENT APPELLANT BY NONE RESPONDENT BY MS. NIDHI SRIVASTAVA, CIT DR DATE OF HEARING 14.07.2021 DATE OF PRONOUNCEMENT 29 .07.2021 ORDER PER KUL BHARAT, JM : THIS APPEAL FILED BY THE REVENUE FOR THE ASSESSMENT YEAR 2010-11 IS DIRECTED AGAINST THE ORDER OF LD. CIT(A), GHAZIABAD DATED 31.08.2018. THE REVENUE HAS RAISED FOLLOWING GROUNDS OF APPEAL:- 1. 'THE LD.CIT(A) HAS ERRED IN LAW AND FACTS IN DEL ETING THE PENALTY LEVIED U/S 271(1)(C) OF THE IT ACT WHILE ASSESSEE H AS BEEN FOUND TO HAVE INDULGED IN BUSINESS ACTIVITIES IN RESPECT OF HOSTEL RECEIPTS. 2. THE ORDER OF LD.CIT(A) BE CANCELLED AND THE ORDE R OF THE ASSESSING OFFICER BE RESTORED. 2. THE ONLY EFFECTIVE GROUND RAISED BY THE REVENUE IN THIS APPEAL IS AGAINST THE DELETION OF PENALTY IMPOSED U/S 271(1)( C) OF THE INCOME TAX ACT, 1961 (THE ACT). NO ONE APPEARED ON BEHALF OF THE ASSESSEE. ITA NO. 7196/DEL/2018 2 | P A GE 3. LD. CIT DR SUPPORTED THE ORDER OF THE ASSESSING OFFICER. 4. WE HAVE HEARD LD. CIT DR AND PERUSED THE MATERIA L AVAILABLE ON RECORD. IT IS NOTICED THAT LD.CIT(A) DELETED THE P ENALTY ON THE GROUND THAT QUANTUM WAS DELETED. LD. CIT DR COULD NOT CONTROVE RT THE FINDINGS OF LD.CIT(A) THAT QUANTUM OF PENALTY OF RS.72,75,100/- IMPOSED U/S 271(1)(C) OF THE ACT, IS REDUCED TO NIL AS THE SUBSTANTIAL QU ANTUM OF ADDITION OF RS. 2,35,43,997/-BEING SURPLUS FROM HOSTEL ACTIVIT Y WHICH WAS TREATED AS BUSINESS INCOME AND HAS BEEN DELETED BY THE TRIBUNA L. LD.CIT(A) HAS GIVEN LIBERTY TO THE ASSESSING OFFICER TO TAKE ACTI ON U/S 275(1A) OF THE ACT IN THE EVENT THE ASSESSMENT ORDER GETS REVISED. WE DO NOT SEE ANY INFIRMITY IN THE ORDER OF LD. CIT(A) AND SAME IS HEREBY AFFIR MED. THUS, GROUNDS OF THE APPEAL RAISED BY THE REVENUE ARE DISMISSED. 4. IN THE RESULT, THE APPEAL OF THE REVENUE IS DISM ISSED. ABOVE DECISION WAS PRONOUNCED ON CONCLUSION OF VIRT UAL HEARING IN THE PRESENCE OF BOTH THE PARTIES ON 29 TH JULY, 2021. SD/- SD/- (O.P.KANT) (KUL B HARAT) ACCOUNTANT MEMBER JUDICIA L MEMBER *AMIT KUMAR* ITA NO. 7196/DEL/2018 3 | P A GE COPY FORWARDED TO: 1. APPELLANT 2. RESPONDENT 3. CIT 4. CIT(APPEALS) 5. DR: ITAT ASSISTANT REGISTRAR ITAT, NEW DELHI