SHANKAR MATH,NEW DELHI V. WARD EXEMPTION 2(1), NEW DELHI

ITA 4288/DEL/2025

AI Insights

The case involves an appeal by Shankar Math against a penalty imposed by the Income Tax Officer for the non-filing of a tax return over an extended period of 2423 days for the Assessment Year 2011-12. The penalty was initially set by the Assessing Officer and upheld by the CIT(A)/NFAC, Delhi. The primary legal contention was whether the assessee had a justifiable reason for the significant delay in filing the return. The Tribunal considered the circumstances, including potential communication issues within the trust and the disruptions caused by the COVID-19 pandemic, and concluded that these constituted a reasonable cause under section 274 of the Income Tax Act.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 792520 (ITAT-DELHI)
• Duration Of Justice: 5 month(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 04-12-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Assessment Year: 2011-2012
• Appeal Filed On: 04-07-2025
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: JITENDER SINGH
• Assessee Lawyers: ABHISHEK NEGI
• Keywords: Reasonable cause; Initiation of penalty proceedings

Judgement Text

"IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH ‘A’, NEW DELHI Before Sh. Satbeer Singh Godara, Judicial Member & Sh. S. Rifaur Rahman, Accountant Member ITA No. 4288/Del./2025 : Asstt. Year : 2011-12 Shankar Math, 11, Bela Road, Civil Lines, New Delhi-110054 Vs Income Tax Officer(E), Ward-2(1), New Delhi-110002 (APPELLANT) (RESPONDENT) PAN No. AACTS4171Q Assessee by: Sh. Abhishek Negi, AR Revenue by: Sh. Jitender Singh, CIT-DR Date of Hearing: 19.11.2025 Date of Pronouncement: 04.12.2025 ORDER Per Satbeer Singh Godara, Judicial Member: This assessee’s appeal for Assessment Year 2011-12, arises against the CIT(A)/NFAC, Delhi’s DIN & order No. ITBA/NFAC/S/250/2025-26/1076066894(1) dated 07.05.2025, in proceedings u/s 272A(2)(e) of the Income Tax Act, 1961. 2. Heard both the parties at length. Case file perused. 3. We note at the outset that the assessee/appellant’s sole substantive ground raised during the course of hearing challenges both the learned lower authorities’ action imposing section 272A(2)(e) penalty of Rs.2,42,300/- computed @ Rs. 100 per day for default of 2423 days in furnishing return; in the Assessing Officer’s order dated 21.03.2022 as upheld in the lower appellate discussion. Printed from counselvise.com ITA No. 4288/Del/2025 Shankar Math 2 4. Learned CIT-DR vehemently argues that the assessee all along has failed to plead and prove any justifiable reason explaining non-filing of his return for an extraordinary period of 2423 days. He could hardly dispute this assessee is a trust wherein possibility of communication gaps between management and auditor could not be altogether ruled out and; that too, in an instance wherein there was Covid-19 pandemic outbreak during the initiation of penalty proceedings by the learned Assessing Officer. We accordingly are of the considered view that the assessee has indeed made out a reasonable cause within the meaning of section 274 of the Act for having not furnished it’s return in the above time period to delete the impugned penalty levied by both the learned lower authorities. 5. This assessee’s appeal is allowed. Order Pronounced in the Open Court on 04/12/2025. Sd/- Sd/- (S. Rifaur Rahman) (Satbeer Singh Godara) Accountant Member Judicial Member Dated: 04/12/2025 *Subodh Kumar, Sr. PS* Copy forwarded to: Appellant 1. Respondent 2. CIT 3. CIT(Appeals) 4. DR: ITAT ASSISTANT REGISTRAR Printed from counselvise.com "