Navjeevan Foundation, New Delhi v. Addll. DIT (Exemptions), New Delhi

ITA 1959/DEL/2009 | 2004-2005
Pronouncement Date: 23-04-2010 | Result: Dismissed

Appeal Details

RSA Number 195920114 RSA 2009
Bench Delhi
Appeal Number ITA 1959/DEL/2009
Duration Of Justice 11 month(s) 12 day(s)
Appellant Navjeevan Foundation, New Delhi
Respondent Addll. DIT (Exemptions), New Delhi
Appeal Type Income Tax Appeal
Pronouncement Date 23-04-2010
Appeal Filed By Assessee
Order Result Dismissed
Bench Allotted F
Tribunal Order Date 23-04-2010
Date Of Final Hearing 22-04-2010
Next Hearing Date 22-04-2010
Assessment Year 2004-2005
Appeal Filed On 11-05-2009
Judgment Text
ITA NO. 1959/D/09 1 IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH F NEW DELHI BEFORE SHRI VIMAL GANDHI HONBLE PRESIDENT AND SHRI R.C. SHARMA ACCOUNTANT MEMBER ITA NO. 1959/DEL/2009 ASSTT. YEAR: 2004-05 NAVJEEVAN FOUNDATION VS ADDL. DIRECTOR OF INCOME TAX 252 NAZAR SINGH PLACE (EXEMPTIONS ) RANGE-II 11 SANT NAGAR NEW D ELHI. NEW DELHI-110065 (APPELLANT) (RESPONDENT) APPELLANT BY: SHRI PRADEEP BATRA RESPONDENT BY: SMT. BANITA DEVI NAREEN SR. DR O R D E R PER VIMAL GANDHI PRESIDENT THIS APPEAL BY THE ASSESSEE FOR AY 2004-05 IS DIRE CTED AGAINST ORDER OF CIT(A) UPHOLDING LEVY OF PENALTY OF RS.39 600/- U/S 272 A(2)(E) OF INCOME TAX ACT 1961 FOR DELAY IN FILING OF THE RETU RN. 2. THE ASSESSEE IS A TRUST AND HAS SMALL INCOME. H OWEVER IN THE LIGHT OF PROVISION OF SECITON 139(4A) IT WAS REQUIRED TO SUBMIT ITS RETURN OF INCOME BY 31.10.2004. IT FILED ITS RETURN ON 2.12. 05. ABOUT THE ASSESSMENT THERE IS NO DISPUTE. HOWEVER FOR THE DELAY IN THE SUBMISSION OF RETURN THE AO IMPOSED PENALTY OF RS.39 600 WITH THE FOLLOWING OBSERVATIONS:- HERE IN THIS CASE AS PER THE INCOME AND EXPENDITU RE A/C THE VOLUNTARY CONTRIBUTIONS/DONATIONS RECEIVED BY ITA NO. 1959/D/09 2 THE ASSESSEE ARE TO THE TUNE OF RS.2 00 600/-. HEN CE THE TOTAL INCOME OF THE ASSESSEE CLEARLY FALLS ABOVE TH E MAXIMUM AMOUNT CHARGEABLE TO TAX AND THE ASSESSEE W AS LIABLE TO FILE ITS INCOME TAX RETURN. SINCE THE ASSESSEE HAS DEFAULTED IN FILING ITS RETU RN OF INCOME WITHIN THE STATUTORY TIME LIMIT AND HAS NOT OFFERED ANY SATISFACTORY AND VALID REASONS WHATSOEVER FOR T HE DELAY DESPITE HAVING BEEN GIVEN SO MANY OPPORTUNITI ES IT IS CLEAR THAT THE ASSESSEE HAS DELIBERATELY NOT FIL ED THE RETURN OF INCOME ON TIME THEREBY FLOUTING THE STAT UTORY PROVISIONS OF THE INCOME TAX ACT FOR WHICH PENALTY OF RS.100/- IS LEVIABLE FOR EVERY DAY DURING WHICH THE FAILURE CONTINUES. IN THIS CASE THERE IS A DELAY OF 396 (THREE HUNDRED NINETY SIX ONLY) DAYS FOR WHICH A P ENALTY OF RS.39600/- (396 X100 = 39600) IS WORKED OUT AND IMPOSED ON THE ASSESSEE. 3. THE ASSESSEE CHALLENGED ABOVE LEVY IN APPEAL BEF ORE THE LD. CIT(A) BUT REMAINED UNSUCCESSFUL. THE LD. CIT(A) MAINTAIN ED THAT APPELLANT DID NOT FURNISH ANY COGENT REASON FOR INORDINATE DELAY OF 3 96 DAYS FOR FILING THE RETURN BEFORE THE ADDL. DIT(E) OR BEFORE HIM. ACCO RDINGLY LEVY OF PENALTY WAS HELD TO BE JUSTIFIED AND CONFIRMED. 4. IN PROCEEDINGS BEFORE THE APPELLATE TRIBUNAL TH E ASSESSEE REITERATED ITS SUBMISSION IN WRITING (AS ALSO IN ORAL ARGUMENTS) W HICH IS AS UNDER:- THE TRUST WAS FORMED ON 16.9.2003 AND FIRST ACCOU NTING PERIOD WAS CLOSED ON 31 ST MARCH 2004. THUS THE ASSESSMENT YEAR 2004-05 IS THE FIRST YEAR OF THE TR UST AND WHICH IS ALSO NOT A FULL YEAR. THE TRUST IS IN ITS INITIAL STAGES OF ITS OPERATION ONLY AND NOT MUCH ACTIVITY HAS TAKEN PLACE AND IS NOT FULLY ORGANIZED. THERE WAS NO TA X DUE ON THE TOTAL INCOME AND THE RETURN WAS FILED VOLUNTARI LY AND IS ITA NO. 1959/D/09 3 FILING ITS RETURN OF INCOME REGULARLY. A PENALTY O F RS.39 600/- HAS BEEN IMPOSED ON THE RETURNED AND ASSESSED INCOME OF RS.28 453/- WHICH IS TOO HARSH PARTICULARLY WHEN THERE IS NO INCOME TAX DUE ON THE INCOME. 5. WE HAVE CONSIDERED THE FACTS AND CIRCUMSTANCES O F THE CASE AND SUBMISSION OF THE PARTIES. THE LEVY OF PENALTY MAY BE HARSH BUT IT CANNOT BE DELETED ON THAT GROUND. THE ASSESSEE IN TERMS OF S ECTION 139 (4A) OF THE INCOME TAX ACT HAD A STATUTORY OBLIGATION TO SUBMIT THE RETURN IN TIME. THE PENALTY HAS BEEN LEVIED AS NO REASONABLE CAUSE FOR THE DELAY HAS BEEN SHOWN EITHER BEFORE THE REVENUE AUTHORITIES OR BEFORE US. IT HAS BEEN SUBMITTED THAT THE ASSESSEE VOLUNTARILY FILED THE RETURN AND HAD N O INCOME. NOTHING BEYOND THAT HAS BEEN CLAIMED. THE INORDINATE DELAY IN THE SUBMISSION OF RETURN HAS NOT BEEN EXPLAINED. WITHOUT ANY EXPLANATION OF DEL AY WE ARE UNABLE TO INTERFERE IN THE IMPUGNED ORDER OF LD. CIT(A). THE QUESTION THAT CHARITABLE TRUST IS LIABLE TO FILE THE RETURN U/S 139(4A) EVEN IF ITS INCOME IS NIL AND IN CASE THE SAME IS NOT FILED THE TRUST IS LIABLE TO PAY PENALTY HAS BEEN CONSIDERED AND DECIDED AGAINST THE ASSESSEE AS PER THE FOLLOWING DECISIONS:- I) GODIJI PARSHWANATHJI JAIN VS CIT 226 ITR 798 (GUJAR AT) II) DIRECTOR OF INCOME TAX(EXEMPTIONS) VS MALAD JAIN YU VAK MANDAL MEDICAL RELIEF CENTRE AND SUSHMAVATI EDUCATI ONAL TRUST 250 ITR 488 (BOMBAY) ITA NO. 1959/D/09 4 6. IN THE LIGHT OF ABOVE DISCUSSION WE CONFIRM THE LEVY OF PENALTY. 7. IN THE RESULT THE APPEAL OF THE ASSESSEE IS DIS MISSED. ORDER PRONOUNCED IN OPEN COURT ON 23.4.2010. SD/- SD/- (R.C. SHARMA) (VIMAL GANDHI) ACCOUNTANT MEMBER PRESIDENT DATED: APRIL 23 RD 2010. GS COPY TO: 1. NAVJEEVAN FOUNDATION NEW DELHI. 2. ADDL. DIT(EXEMPTIONS) NEW DELHI. 3. CIT(A)-XXI NEW DELHI. 4. CIT 5. DR BY ORDER DY.REGISTRAR ITAT