2010 (8) TMI 352

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....eard together and are being disposed of by this common order for the sake of convenience. 2. The grounds raised by the assessee are identical in both these years and hence we are reproducing the grounds from ITA No. 2224/Del./2002 :- "(1) That the Ld. authority below has grossly erred in passing the order have erred in passing order which is erroneous, bad at law and against facts and circumstances of the case. (2) That the exemption under section 10(23C)(iiiad) of the Income-tax Act, 1961 has been wrongly disregarded. (3) That there is no obligation to file return of income either under section 139(1) or 139(4) of the Act since its income does not exceed the taxable limits and is not an institution claiming exemption under sect....

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....emption under section 11 or 12. It is also submitted that sub-section (4C) was inserted in section 139 with effect from 1-4-2003 and hence, this sub-section of section 139 is not applicable in the present year and this sub-section is not applicable to the assessee for one more reason because the assessee is covered by sub-clause (iiiab) of section 10(23C) whereas sub-section (4C) of section 139 is applicable to those institutions which are covered by sub-clauses (iiiad) and (iiiae) of section 10(23C). It was the submission that because of these facts, the assessee was under bona fide belief that the income of the assessee is exempt and the provisions of section 139 are not applicable to it and, therefore, the penalty imposed by the Assessin....