Swamy Vivekanandha Vidhyala Trust Vs ITO (ITAT Chennai)
Summary: The appeal concerned levy of penalty under section 272A(2)(e) of the Income-tax Act, 1961 for failure by a charitable trust to furnish its return of income. The assessee, a charitable trust running an educational institution and registered under section 12A, had not filed its return for AY 2013-14. The Assessing Officer received information that the assessee had deposited cash of Rs. 75,55,200/- into its bank account. Consequently, assessment proceedings were reopened by issuing notice under section 147. In response, the assessee filed a return declaring Nil income after claiming exemption under section 10(23C)(iiiad). The assessment under section 147 accepted the returned income. Subsequently, penalty proceedings under section 272A(2)(e) were initiated.
The assessee explained that the return had not been filed because of a bona fide belief that no return was required where the income was exempt. It also contended that there was no loss to the Revenue and no intention to conceal income. The Assessing Officer rejected these submissions and levied penalty of Rs. 3,04,300/-. The CIT(A) confirmed the penalty, holding, among other things, that the assessee had failed to comply with section 139(4C), that ignorance of law was not an acceptable excuse, absence of revenue loss and mens rea was irrelevant, and that the penalty was mandatory in the absence of reasonable cause under section 273B.
