Appeal details
Counselvise Citation
[2024] 100 COUNSELVISE.COM (IT) 0286 (ITAT-CHENNAI)
Assessee PAN
Bench
Appeal Number
Duration Of Justice
1 month(s) 2 day(s)
Appellant
Respondent
Appeal Type
Income Tax Appeal
Pronouncement Date
02-06-2024
Appeal Filed By
Assessee
Order Result
Allowed
Bench Allotted
A
Next Hearing Date
21-05-2024
Assessment Year
2018-2019
Appeal Filed On
30-04-2024
Judgement Text
आयकर अपीलीय अिधकरण “ए” ायपीठ चेई म।
IN THE INCOME TAX APPELLATE TRIBUNAL
“A” BENCH, CHENNAI
माननीय ी एबी टी. वक , ाियक सद" एवं
माननीय ी मनोज कु मार अ'वाल ,लेखा सद" के सम)।
BEFORE HON’BLE SHRI ABY T. VARKEY, JM AND
HON’BLE SHRI MANOJ KUMAR AGGARWAL, AM
1. आयकरअपील सं./ ITA No.1278/Chn y/2024
(िनधा*रण वष* / As sessment Year: 2018-19)
&
2. Sta y Application No.25/Chn y/2024
(In ITA No.1278/Chn y/2024)
(िनधा*रण वष* / As sessment Year: 2018-19)
Annai Velankanni Educational and
Social Society
Angucherry Palayam, Panruti
Cuddalore-607 106.
बनाम
/
Vs .
DCIT (Exemptions)
Chennai-34.
थायीलेखासं./जीआइआरसं./PAN/GIR No. AABTA-9910-E
(अपीलाथ /Appellant) : ( थ / Respondent)
अपीलाथ कीओरसे/ Appellant by :
Ms. N.V. Lakshmi (Advocate)-Ld. AR
थ कीओरसे/Respondent by :
Shri AR V Sreenivasan (Addl.CIT) -Ld. DR
सुनवाईकीतारीख/Date of Hearing : 22-05-2024
घोषणाकीतारीख /Date of Pronouncement : 03-06-2024
आदेश / O R D E R
Manoj Kumar Aggarwal (Accountant Member)
1. Aforesaid appeal by assessee arises out of an order passed by
Learned Commissioner of Income Tax (Appeals), National Faceless
Appeal Centre (NFAC), Delhi [CIT(A)] on 15-03-2024 in the matter of
penalty levied by Ld. Assessing Officer [AO] of Rs.41.40 Lacs u/s 270A
of the Act allegedly for under-reporting of income vide order dated 26-
02-2022. The Ld. AR assailed the invocation of provisions of Sec.270(9)
and submitted that no case of under-reporting could be made out against
the assessee considering the assessment framed by Ld. AO. The Ld. Sr.
DR, on the other hand, justified impugned penalty. The assessee is a
registered trust u/s 12AA and eligible for exemption u/s 11 /12. Having
heard rival submissions and upon perusal of case records, our
adjudication would be as under.
2. Facts leading to impugned penalty are that during assessment
proceedings, it transpired that the assessee donated corpus donation of
Rs.67 Lacs to another trust which was treated as application of income
for charitable purposes. The Ld. AO, invoking Explanation-2 to Sec.11
(1), denied the said claim. Consequently, Ld. AO proceeded to impose
impugned penalty on the allegation that there was under-reporting of
income. In the absence of any cogent reply forthcoming from assessee,
Ld. AO imposed penalty of Rs.41.40 Lacs.
3. During appellate proceedings, the assessee, inter-alia, submitted
that denial of application of corpus donation do not give rise to any
taxable income in the hands of the assessee and therefore, no penalty
could be levied. However, Ld. CIT(A) confirmed the same against which
the assessee is in further appeal before us.
4. From computations as made by Ld. AO in the assessment order, it
could be seen that on gross receipts of Rs.755.38 Lacs, the assessee
has claimed application of Rs.741.66 Lacs which include impugned
donation of Rs.67 Lacs. Accordingly, the application of income was
restricted to Rs.674.66 Lacs. The assessee set-apart 15% of surplus for
utilization in future period. The same was claimed to be Rs.113.30 Lacs.
In view of disallowance of Rs.67 Lacs, this set apart amount has been
restricted to the extent of Rs.80.72 Lacs. Thus, ultimately no taxable
income has accrued in the hands of the assessee and therefore, no case
of under-reporting of income could be made against the assessee.
Accordingly, we delete the impugned penalty and allow the appeal of the
assessee.
5. The appeal stand allowed. The connected stay application has
been rendered infructuous.
Order pronounced on 3
rd
June, 2024
Sd/- Sd/-
(ABY T. VARKEY) (MANOJ KUMAR AGGARWAL)
ाियक सद" /JUDICIAL MEMBER लेखा सद" / ACCOUNTANT MEMBER
चे4ई Chennai; िदनांक Dated :03-06-2024
DS
आदेशकीHितिलिपअ'ेिषत/Copy of the Order forwarded to :
1. अपीलाथ /Appellant
2. थ /Respondent
3. आयकरआयु=/CIT Chennai.
4. िवभागीय ितिनिध/DR
5. गाडBफाईल/GF
