Income Tax Appellate Tribunal - Lucknow
Shri Koshlesh Sadan Dharmadaya Trust,, ... vs Department Of Income Tax
IN THE INCOME TAX APPELLATE TRIBUNAL
LUCKNOW BENCH "A", LUCKNOW
BEFORE SHRI SUNIL KUMAR YADAV, JUDICIAL MEMBER AND
SHRI J SUDHAKAR REDDY, ACCOUNTANT MEMBER
ITA No.600/LKW/2012
Assessment Year:2007-08
ACIT v. Shri Koshlesh Sadan Dharmadaya
Circle, Faizabad Trust, Ayodhya, Faizabad
PAN:AAFTS0678H
(Appellant) (Respondent)
Appellant by: Shri. Alok Mitra, D.R.
Respondent by: None
Date of hearing: 19.03.13
Date of pronouncement: 22.03.13
ORDER
PER J. SUDHAKAR REDDY:
This is an appeal filed by the Revenue against the order of the ld. CIT(A) - I, Lucknow dated 3.10.2012 for assessment year 2007-08.
2. The brief facts of the case are that the assessee, a charitable organization, filed its return of income on 7.11.2007 declaring income of `57,760. The Assessing Officer issued a notice under section 148 of the Income-tax Act, 1961 on 12.6.2008. As no reply was received from the assessee, the Assessing Officer passed ex-parte order disallowing 50% of the amount utilized by the assessee for charitable purposes. Thereafter, the Assessing Officer initiated penalty proceedings under section 271(1)(c) of the Act. The Assessing Officer passed penalty order dated 25.6.2010 ex-parte levying penalty of `5 lakhs.
3. The first appellate authority also passed an ex-parte order deleting the penalty, on the ground that the disallowance was made on ad hoc basis :-2-:
and such ad hoc disallowance cannot be considered as concealment of income or furnishing of inaccurate particulars of income.
4. Before us none appeared on behalf of the assessee and there was no application for adjournment either. Under these circumstances, we dispose of the appeal of the assessee ex-parte qua the assessee, on merits, after hearing the ld. D.R., Shri. Alok Mitra.
5. The assessee is a charitable institution and is registered under section 12AA of the Act. The assessee had submitted before the Assessing Officer that exemption was granted to the assessee for previous three years. The assessee had filed the copies of Smirity Patra, grant from U.G.C. and certificate under section 80G of the Act for the period 1.4.1995 to 31.3.1997 and also copy of exemption under section 197 of the Act given by the Assessing Officer for non-deduction of tax for payment of rent to the assessee for financial years 2005-06 and 2006-07. The Assessing Officer passed an ex-parte order by disallowing 50% of the charitable expenses. He, however, levied penalty of `5 lakhs under section 271(1)(c) of the Act. We find that the ld. CIT(A) was right in deleting the penalty for the reason that this was an ex-parte order and the disallowance was made on ad hoc basis. The Assessing Officer has not given a specific finding that the claim of the assessee is false or bogus. Under these circumstances, we uphold the order of the first appellate authority deleting the penalty on mere disallowance of part of charitable expenses on ad hoc basis.
6. In the result, appeal of the Revenue is dismissed.
Order pronounced in the open court on 22.3.2013.
Sd/- Sd/-
[SUNIL KUMAR YADAV] [J SUDHAKAR REDDY]
JUDICIAL MEMBER ACCOUNTANT MEMBER
DATED:22.3.2013
JJ:2003
:-3-:
Copy forwarded to:
1. Appellant
2. Respondent
3. CIT(A)
4. CIT
5. DR
Assistant Registrar