ITAT DELHI BENCH ‘SMC’
Vaish Degree College Trust
Versus
Assistant Commissioner of Income-tax
Income Tax Appeal Nos. 4538 To 4543 (Delhi) Of 2011
[Assessment Years 2003-04 TO 2008-09]
Date of Pronouncement – 28.09.2012
ORDER
1. These appeals filed by the assessee are against the order dated 21-07-2011 of the Ld. CIT(A), Muzaffarnagar for AYs 2003-04 to 2008-09.
2. In these appeals, the issue is regarding penalty u/s 271(1)(c). Except for the amount of penalty, the facts are identical in all the AYs under consideration. Therefore, I refer to the facts as obtaining in Ay 2003-04 vide ITA No. 4538/Del/2011.
3. The assessee is a society registered under Societies Registration Act, 1860. It was running a college known as “Vaish Inter College, Muzaffarnagar”. The assessee had not filed any return for the year under consideration. The Assessing Officer has observed that during the assessment proceedings of M/s Sarti Devi Raja Ram Public School, it was noticed that Sh. Ramesh Chand Gupta was the Secretary of that trust. That trust was not registered u/s 12AA of the Income Tax Act, 1961 till 29.03.2006. The exemption u/s 10(23C)(iiiad) was also disallowed on certain grounds. The Assessing Officer noticed that Sh. Ramesh Chand Gupta was also Secretary in the present trust. He observed that before any notice could be issued, the assessee filed a petition u/s 273A of the Income Tax Act on 06.04.2009 before the CIT, Muzaffarnagar, copy of which was also endorsed to the Assessing Officer. The Assessing Officer observed that the petition filed by the CIT, Muzaffarnagar was also having photocopies of the return which was not filed in regular course. The income declared in the return was Rs. 2,11,070/- under the head income from house property.
4. Since the assessee did not file any return, notice u/s 148 was issued on 03.08.2009, after recording following reasons:-
“Assessee, the society, filed a petition u/s 273A of the Income Tax Act requesting the Commissioner of Income Tax to waive the penalty, if any, livable or payable. From the perusal of the petition the following factors gathered:-
1. The “Vaish College, Shamli is society registered under Societies Registration Act, 1860 was running a college known as “Vaish Inter College” and was having the following properties:-
(a) 23 shops (S. No. 1 to 23) with Chabutra on Shamli Kairana Road, Shamli.
(b) 23 rooms along with varanda on the back of above shops.
(c) Two shops (No. 24 & 25) with Chabutar on Shamli Kairana Road, Shamli.
2. The aforesaid society donated the above properties to a trust consisted the following trustee:-
