Sai Baba Sansthan Vs ITO (ITAT Raipur)
Assessee, a public religious charitable trust managing Sai Mandir at Bhilai & also carrying out various welfare activities, filed appeals against orders of CIT(A) upholding penalties levied u/s 271(1)(c) for AYs 2012-13 & 2013-14.
It was submitted that quantum appeals for both years had already been remanded to CIT(A) by Tribunal in ITA Nos. 247 & 248/RPR/2025 (order dated 03.06.2025) as earlier orders were ex parte. In such circumstances, penalties could not survive independently.
Tribunal noted that penalty u/s 271(1)(c) depends upon outcome of quantum proceedings. Where additions are remanded, penalty too must be restored for consistency. Reliance was placed on SC ruling in Mohd. Mohatram Farooqui Vs CIT (2010-TIOL-23-SC-IT) & Delhi HC in Sanjay Gupta Vs CIT (366 ITR 18), which held that when quantum is set aside, penalty cannot stand on its own.
Accordingly, Tribunal set aside CIT(A)’s orders & remanded penalty matters to NFAC for de novo adjudication. It directed that penalty shall survive only if quantum additions are upheld, otherwise it will automatically lapse. Thus, both appeals were allowed for statistical purposes
FULL TEXT OF THE ORDER OF ITAT RAIPUR
The captioned appeals preferred by the assessee emanates from the respective orders of the Ld.CIT(Appeals)/NFAC, Delhi dated 30.07.2025 for the assessment years 2012-13 and 2013-14 as per the grounds of appeal on record.
