Bundelkhand University Vs Assessment Unit/DCIT (Exemption) (ITAT Agra)
The Income Tax Appellate Tribunal (ITAT) in Agra has ruled in favor of Bundelkhand University, canceling a penalty levied by the Assessment Unit under Section 272A(1)(d) of the Income-tax Act. The dispute arose after the Assessing Officer (AO) observed that the university, a non-profit educational institution, had initially failed to furnish certain requested information during the assessment proceedings. The AO had proceeded to assess the university as an Association of Persons (AOP) and imposed the penalty for the procedural failure.
The ITAT found the penalty to be unjustified, noting that despite the initial delay, the university had submitted all the relevant details before the assessment was completed. This fact was even acknowledged by the AO in the final assessment order. The tribunal characterized the university’s failure as a “mere technical venial breach” and held that it was not a sufficient reason to uphold the penalty. This decision aligns with similar judicial precedents from other tribunals, including the Delhi Tribunal’s ruling in Akhil Bhartiya Pratmik Shamshak Sangh Bhavan Trust v ADIT. The ITAT’s order emphasizes that a penalty for a procedural lapse is not warranted when the required information is ultimately provided and considered for the final assessment.
