Income Tax Appellate Tribunal - Delhi
Additional Director Of Income Tax vs M.D. Memorial Charitable & Educational ... on 29 November, 2001
JUDGMENT
K.C. Singhal, J.M.
1. Since common issue is involved in both these appeals, the same are being disposed of by the common order for the sake of convenience. The only issue common to both the appeals relates to the levy of penalty under Section 272A(2)(e) on account of late filing of the return.
2. The assessee is a charitable and educational society. The penalty proceedings were initiated under s, 272A(2)(e) for the years under consideration on the ground that the assessee had not filed the return of income within the period specified under Section 139(4A). The explanation of the assessee was that the only activity of the trust is running of the recognised school whose income is exempt under Section 10(22) of the IT Act, 1961. This explanation was not accepted by the AO and accordingly penalty of Rs. 51,200 was imposed for asst. yr. 1992-93 and Rs. 14,700 for asst. yr. 1993-94.
3. The matter was carried before the CIT(A), who has held that the assessee-trust is exempt under Section 10(22) of the IT Act considering the only activity of the assessee. Consequently it was held that assessee was not required to file any return under Section 139(4A). The penalties levied by AO were, therefore, deleted by the CIT(A). Aggrieved by the same, the Revenue is in appeal before the Tribunal.
4. After hearing both the parties, we do not find any error in the order of the CIT(A). The learned Departmental Representative has not been able to place any material to controvert the finding of the CIT(A) that the trust is exempt under Section 10(22). Consequently, in our opinion, the CIT(A) was justified in holding that assessee was not required to file the return under Section 139(4A) and penalty could not be sustained. This view is also fortified by the decision of the Tribunal in the case of ITO v. St. Michaeals Education Foundation (1992) 43 TTD 656 (Del) wherein the penalty under Section 271(1)(a) was deleted on the ground that the assessee was enjoying the benefit of Section 10(22). Following the same, the orders of CIT(A) are hereby upheld.
5. In the result, appeals of the Revenue are dismissed.