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TMI Blog2015 (6) TMI 891X X X X Extracts X X X X X X X X Extracts X X X X ..... ed in ITA No. 6048/Del/2013 (A.Y. 2002-03) read as under:- 1. That the learned CIT(A) has erred in law in deleting the penalty imposed at Rs. 10,15,900/- u/s 271(1) (c) without appreciating the facts. which AO has discussed in assessment order at length. 2. That the learned CIT(A) has erred in law by simply holding that since quantum appeal has been decided in favour of appellant assessee, the very basis of AO passing penalty order u/s 271(I)(c) also ceases to exist and deleted the penalty u/s 271 (I)(c) without appreciating that the revenue filed appeal against the order of the Hon'ble ITAT wherein following question of in brief emerges against the quantum appeal relief, namely:- a) Whether an in situation can be treated as an educati ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... since quantum appeal has been decided in favour of appellant assessee, the very basis of AO passing penalty order u/s 271(I)(c) also ceases to exist and deleted the penalty u/s 271 (I )(c) without appreciating that the revenue filed appeal against the order of the Hon' ble ITAT wherein following question of in brief emerges against the quantum appeal relief, namely:- a) Whether an in situation can be treated as an educational institution and benefit of section 1O(23C)(iiiad) of the Act be allowed thereto without affiliation to CBSE or any other Board. b) Whether the Hon'ble ITAT is correct in allowing benefit of section IO(23C)(iiiad) to the assessee when it did not have any affiliation to the CBSE or any other, Board during the year an ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... -04 respectively. The entire corpus fund has been received by the assessee in cash and evidence in this regard could not be furnished by the assessee society. As the. income of Rs. 8,85,600/- had escaped assessment during. the A.Y. 2003-2004, proceeding u/s 147 were initiated and assessment was completed on an income Rs. 8,85,600/- in the status of AOP U/S 143(3)/147 of the Income Tax Act,1961 and exemption U/S 1O(23C) (iiiad) was not allowed. Assessing Officer noted that in this case evidences of escapement of income of Rs. 8,85,600/- for AY 2003-04 could be detected only during the course of assessment proceedings under section 143(3) for the AT 2004-05. If the case for AY 2004-05 would not have been scrutinized above income of Rs. 8,85,6 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... penalty order. 8. The assessee is a Society registered with Registrar of Society with the object of setting up of an educational institution. In this case, the assessee filed return of income for Assessment Year 2003- 04 on 24/9/2003 declaring NIL income. Subsequently, the assessment was completed under section 143(3) of the Income-tax Act on 31/10/2007 after making an addition of Rs. 8,85,600/- by treating the voluntary contribution donations of Rs. 8,85,600/- credited to corpus account of the society as Revenue Receipts. Subsequent to passing of above assessment order the A.O. on consideration of facts and circumstances of the case initiated penalty proceedings with respect to above addition and vide order dated 01/03/2012 passed u/s. 27 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s been decided in favour of the assessee assessee, the very basis of A.O. passing penalty order u/s. 271(1)(c), also ceases to exist and therefore, the penalty order passed by the AO turns infructuous and thus deserves to be deleted, accordingly, the same rightly was deleted vide impugned order dated 13.8.2013 passed by the Ld. CIT(A). 8.1 Keeping in view of the above facts and circumstances of the case, we do not see any reason to interfere with the order of the Ld. CIT(A), accordingly, we uphold action of the Ld. CIT(A) of deleting the penalty of Rs. 2,51,664/- and decide the issue in dispute against the Revenue by dismissing the Appeal filed by the Revenue. ITA NO. 6048/DEL/2013 ((AY. 2002-03) 9. Since the facts of this appeal are si ..... X X X X Extracts X X X X X X X X Extracts X X X X
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