ST JOSEPHS EDUCATIONAL AND CHARITABLE TRUST,KOTTAYAM V. INCOME TAX OFFICER, (EXEMPTION WARD), KOTTAYAM, KOTTAYAM

ITA 640/COCH/2025

AI Insights

The case involves St. Josephs Educational and Charitable Trust, which appealed against the penalty imposed by the Income Tax Officer (ITO) for not filing the income tax return within the prescribed time under section 139(1) of the Income Tax Act, 1961, for the assessment years 2014-15 and 2015-16. The Trust argued that since there was no taxable income, filing a return was not compulsory. The National Faceless Assessment Centre (NFAC) had initially assessed the income as nil and imposed a penalty, which was upheld by the CIT(A). The Tribunal, however, found that the penalty was unjustified as the Trust had no taxable income, and thus, the return was not mandatory.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 785140 (ITAT-COCHIN)
• Duration Of Justice: 1 month(s) 16 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 31-10-2025
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: DB
• Assessment Year: 2014-2015
• Appeal Filed On: 14-09-2025
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: LEENA LAL
• Assessee Lawyers: P.V. CHACKO
• Keywords: Charitable institution
• Section: 147; 148; 12A

Judgement Text

"IN THE INCOME TAX APPELLATE TRIBUNAL COCHIN BENCH BEFORE SHRI INTURI RAMA RAO, AM AND SHRI ANIKESH BANERJEE, JM ITA Nos. 640 & 641/Coch/2025 Assessment Years: 2014-15 & 2015-16 St. Josephs Eucational and Charitable Trust .......... Appellant St. Gosephs Generalate, Kottayam 686006 [PAN: AAHTS8310C] vs. ITO (Exemptions), Kottayam ......... Respondent Assessee by: Shri P.V. Chacko, CA Revenue by: Smt. Leena Lal, Sr. D.R. Date of Hearing: 29.10.2025 Date of Pronouncement: 31.10.2025 O R D E R Per: Inturi Rama Rao, AM These appeals filed by the assessee are directed against the order of the National Faceless Appeal Centre, Delhi (NFAC) dated 16.07.2025 for Assessment Years (AY) 2014-15 & 2015-16. 2. Since identical issues and facts are involved in these appeals, they are heard together and disposed of by this common order. 3. For the sake of convenience and clarity the facts relevant to the appeal bearing ITA No. 640/Coch/2025 for AY 2014-15 are stated herein. Printed from counselvise.com 2 ITA Nos. 640 & 641/Coch/2025 St. Josephs Eucational and Charitable Trust 4. Brief facts of the case are that the appellant is a charitable trust registered u/s. 12A of the Income Tax Act, 1961 (the Act). No return of income u/s. 139(1) was filed for AY 2014-15 by the appellant. However, the appellant trust had filed return of income in response to notice u/s. 148 of the Act dated 15.12.2021. Against the said return of income, the assessment was completed by the National Faceless Assessment Centre, Delhi (hereinafter called \"the AO\") vide order dated 19.03.2022 u/s. 147 r.w.s. 144B of the Act at Nil income. Subsequently, the assessing authority had initiated penalty proceedings u/s. 272A(2)(e) of the Act by issuing show cause notice dated 18.09.2022 for non filing of return of income for AY in question within the prescribed time u/s. 139(1) of the Act. In response to the show cause notice, it is submitted that filing of return of income is not compulsory in the absence of any taxable income. However, rejecting the above contention the AO had proceeded with levy of penalty of Rs. 2,57,100/- u/s. 272A(2)(e) of the Act for non filing of the return of income. 5. Being aggrieved, an appeal was filed before the CIT(A), who vide the impugned order confirmed the levy of penalty. 6. Being aggrieved, the appellant is in appeal before this Tribunal in the present appeal. 7. The learned counsel for the assessee submits that for the year under consideration filing of return of income u/s. 139(1) was not Printed from counselvise.com 3 ITA Nos. 640 & 641/Coch/2025 St. Josephs Eucational and Charitable Trust compulsory in the absence of taxable income. It is further submitted that even in the assessment made pursuant to the notice u/s. 148, no additions were made by the AO. The income was assessed at Nil income. Therefore, no prejudice was caused to the Revenue and levy of penalty is unjustified. 8. The learned Sr. DR opposed the above submissions. 9. We have heard the rival contentions and perused the material available on record. The only issue that arises for our consideration is whether the CIT(A) was justified in confirming levy of penalty u/s. 272A(2)(e) of the Act. Admittedly, there was no taxable income for the year under consideration. Even in the assessment made pursuant to notice u/s. 148 of the Act, it resulted in Nil assessed income. Thus, these facts demonstrate that there was no taxable income in the hands of the appellant trust for the year under consideration. Provisions of Income Tax does not mandate that filing of return of income is mandatory in the absence of taxable income and, therefore, we are of the considered opinion that levy of penalty for non filing of return of income u/s. 139(1) of the Act is not warranted and accordingly, we direct the AO to delete the penalty levied u/s. 272A(2)(e) of the Act. 10. Since identical issues and facts are involved in assessee’s appeal ITA No. 641/Coch/2025, our findings in ITA No. 649/Coch/2025 shall apply mutatis mutandis to this appeal also. Printed from counselvise.com 4 ITA Nos. 640 & 641/Coch/2025 St. Josephs Eucational and Charitable Trust 11. In the result, the appeal filed by the assessee stands allowed. Order pronounced in the open court on 31st October, 2025. Sd/- Sd/- (ANIKESH BANERJEE) JUDICIAL MEMBER (INTURI RAMA RAO) ACCOUNTANT MEMBER Cochin, Dated: 31st October, 2025 n.p. Copy to: 1. The Appellant 2. The Respondent 3. The Pr. CIT concerned 4. The Sr. DR, ITAT, Cochin 5. Guard File Assistant Registrar ITAT, Cochin Printed from counselvise.com "