SRI SAI BABA SANSTHAN, BHILAI,DURG V. INCOME TAX OFFICER, EXMP-II, RAIPUR, RAIPUR

ITA 540/RPR/2025

AI Insights

The case involves Sri Sai Baba Sansthan, a religious public charitable trust, appealing against penalties levied under section 271(1)(c) of the Income Tax Act, 1961 for the assessment years 2012-13 and 2013-14. The trust, engaged in both religious and charitable activities, contested the penalties following the quantum assessments for the mentioned years. The Tribunal noted that the quantum appeals had been remanded to the CIT(Appeals)/NFAC due to ex-parte orders and decided to similarly remand the penalty appeals, emphasizing the need for a comprehensive review post-quantum assessment.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 772920 (ITAT-RAIPUR)
• Duration Of Justice: 9 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 24-09-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Assessment Year: 2012-2013
• Appeal Filed On: 15-09-2025
• Other Referred Cases: Mohd. Mohatram Farooqui vs. CIT (SC) 2010-TIOL-23-SC-IT, Sanjay Gupta Vs. CIT (2014) 366 ITR 18 (Del)
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: PRIYANKA PATEL
• Assessee Lawyers: YOGESH SETHIA
• Keywords: Charitable institution
• Section: 271(1)(c)

Judgement Text

"आयकर अपीलȣय अͬधकरण Ûयायपीठ “एक-सदèय” मामला रायपुर मɅ IN THE INCOME TAX APPELLATE TRIBUNAL RAIPUR BENCH “SMC”, RAIPUR Įी पाथ[ सारथी चौधरȣ, ÛयाǓयक सदèय क े सम¢ BEFORE SHRI PARTHA SARATHI CHAUDHURY, JUDICIAL MEMBER आयकर अपील सं./ITA Nos.540 & 541/RPR/2025 Ǔनधा[रण वष[ /Assessment Years : 2012-13 & 2013-14 Sri Sai Baba Sansthan Sai Mandir, Avenue-B, Civic Center, Sector-6, Bhilai-490 006 (C.G.) PAN: AADTS8938G .......अपीलाथȸ / Appellant बनाम / V/s. The Income Tax Officer Exemption-II, Raipur (C.G.) ……Ĥ×यथȸ / Respondent Assessee by : Shri Yogesh Sethia, CA Revenue by : Dr. Priyanka Patel, Sr. DR सुनवाई कȧ तारȣख / Date of Hearing : 24.09.2025 घोषणा कȧ तारȣख / Date of Pronouncement : 24.09.2025 Printed from counselvise.com 2 Sri Sai Baba Sansthan Vs. ITO, Exemption-II, Raipur ITA Nos.540 & 541/RPR/2025 आदेश / ORDER PER PARTHA SARATHI CHAUDHURY, JM The captioned appeals preferred by the assessee emanates from the respective orders of the Ld.CIT(Appeals)/NFAC, Delhi dated 30.07.2025 for the assessment years 2012-13 and 2013-14 as per the grounds of appeal on record. 2. At the very outset, the Ld. Counsel for the assessee submitted that the assessee is a religious public charitable trust engaged in both public welfare activities as well as religious activities. The trust runs separately a temple of Lord Shirdi Sai Baba “Shraddha” “Saburi”, and along with the religious activities, several charitable activities are also conducted as per the memorandum of association and bye-laws of the said trust. 3. Coming to the merits of the matter, the Ld. Counsel for the assessee submitted that these two cases pertains to A.Ys.2012-13 and 2013-14 regarding penalty levied u/s. 271(1)(c) of the Income Tax Act, 1961 (for short ‘the Act’). It was submitted by the Ld. Counsel that quantum appeal for both the years i.e. A.Y.2012-13 and 2013-14 have been remanded to the file of the Ld. CIT(Appeals)/NFAC since the said orders on quantum were ex-parte. In this context, the Ld. Counsel submitted the copy of order Printed from counselvise.com 3 Sri Sai Baba Sansthan Vs. ITO, Exemption-II, Raipur ITA Nos.540 & 541/RPR/2025 of the Tribunal in ITA Nos.247 & 248/RPR/2025 for A.Ys.2012-13 & 2013-14, dated 03.06.2025. 4. The Ld. Sr. DR conceded to these facts on record and submissions put forth by the Ld. Counsel for the assessee. 5. Having heard the parties herein, I am of the considered view that since quantum appeals of the assessee have been remanded back to the file of the Ld. CIT(Appeals)/NFAC, therefore, following the principles of consistency and for completeness of the matters, it would be all the more appropriate that the penalty appeals should also be restored to the file of the Ld. CIT(Appeals)/NFAC. My aforesaid view in restoring the penalty to the Ld. CIT(Appeals)/NFAC is fortified by the judgment of the Hon’ble Supreme Court in the case of Mohd. Mohatram Farooqui vs. CIT (SC) 2010-TIOL-23-SC-IT wherein it has been held that if addition is restored to the A.O, then penalty should also be restored. Also, the Hon’ble High Court of Delhi in the case of Sanjay Gupta Vs. CIT (2014) 366 ITR 18 (Del) has also held that where the quantum has been remanded to the A.O, the question of penalty on account of the said amount being treated as undisclosed income, should also be remanded to the A.O. In the present case before me the concerned authority however shall be Ld. CIT(Appeals)/NFAC since the quantum has been remanded back to its file for denovo adjudication. Printed from counselvise.com 4 Sri Sai Baba Sansthan Vs. ITO, Exemption-II, Raipur ITA Nos.540 & 541/RPR/2025 6. In view of the aforesaid facts, I set-aside the respective orders of the Ld. CIT(Appeals)/NFAC and remand the matters back to its file for denovo adjudication. The Ld. CIT(Appeals)/NFAC shall first deal with quantum appeals and if the additions or part addition are sustained then only shall the penalty survive. In case, the substantive additions are deleted completely then penalty shall automatically have no legal sustainability separately and shall have to be quashed. 7. As per the above terms grounds of appeal raised by the assessee are allowed for statistical purposes. 8. In the result, both the appeals of the assessee are allowed for statistical purposes. Order pronounced in open court on 24th day of September, 2025. Sd/- (PARTHA SARATHI CHAUDHURY) ÛयाǓयक सदèय/JUDICIAL MEMBER रायपुर / Raipur; Ǒदनांक / Dated : 24th September, 2025. SB, Sr. PS आदेश कȧ ĤǓतͧलͪप अĒेͪषत / Copy of the Order forwarded to : 1. अपीलाथȸ / The Appellant. 2. Ĥ×यथȸ / The Respondent. 3. The Pr. CIT-1, Raipur (C.G.) 4. ͪवभागीय ĤǓतǓनͬध, आयकर अपीलȣय अͬधकरण, “एक-सदèय” बɅच, रायपुर / DR, ITAT, “SMC” Bench, Raipur. 5. गाड[ फ़ाइल / Guard File. Printed from counselvise.com 5 Sri Sai Baba Sansthan Vs. ITO, Exemption-II, Raipur ITA Nos.540 & 541/RPR/2025 आदेशानुसार / BY ORDER, // True Copy // Senior Private Secretary आयकर अपीलȣय अͬधकरण, रायपुर / ITAT, Raipur Printed from counselvise.com "