Guru Nanak Educational Board v. The CIT(Exemption)

Parties Involved

Facts Summary

The assessee, Guru Nanak Educational Board, filed an appeal against the order of the Ld. CIT(A), NFAC Delhi dated 23/02/2023 pertaining to Assessment Year 2017-18. The assessee raised grounds of appeal against the penalty imposed under section 272A(2)(e) for failure to furnish return of income within the due date. The assessee argued that the penalty was imposed without the approval of Joint Director or Joint Commissioner, and that the penalty was wrongly imposed. The assessee also requested to add or amend the grounds of appeal. The facts of the case revealed that the assessment order was passed under section 143(3) on 24/12/2019 by the ACIT, Exemption Circle-1, Chandigarh, determining the total income at Rs. 52,49,214/-. Penalty proceedings under section 272A(2)(e) were initiated for failure to furnish return of income within the due date. The NaFAC, Delhi held that the assessee failed to provide a reasonable explanation for non-submission of ITR within the due date and levied a penalty of Rs. 10,900/- for delay in filing the return of income by 109 days. The assessee appealed to the Ld. CIT(A) but the appeal was dismissed. The assessee then appealed to the ITAT, Chandigarh.…

Legal Issues

• 1. Whether the penalty was imposed without seeking the necessary approval from the Joint Director or Joint Commissioner.
• 2. Whether the explanation provided by the assessee for the delayed filing of return of income constitutes reasonable cause.

Judgment Outcome

Decided in favour of Assessee.

Precedents Relied Upon

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