2023 (3) TMI 514

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.... opposed to the law and facts of the case. 2) The CIT(A) is erred in deleting the penalty holding that addition made by the AO has been curtailed and assessed income is substantially reduced when income itself has not been quantified barring on the order of CIT(A) himself. 3) When CIT(A) has remitted the issue of determining the net taxable income after verification, the order of CIT(A) deleting the entire penalty is opposed to law and facts of the case. 4) The CIT(A) ought to have directed to reduce the penalty proportionately depending on the income quantified in the order giving effect to CIT(A) order. 5) The CIT(A) should have considered the fact that the assessee's wrong claim of exemption u/s.10(23C) which has been adm....

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....reafter the appeal was filed before the Ld.CIT(A). 2.4 The Ld.CIT(A) after considering the various submissions of the assessee, condoned the delay, however on merits, it was observed as under: 7.4 The quantum appeal was decided by CIT-NFAC and stated that:- "7.6 The AO has disallowed the entire gross receipts of Rs. 5,12,41,115/- of the trust stating that the appellant does not qualify for the exemption u/s 10 (23C) (iiiad) of the Act where as the appellant in his written submission stated that:- "3.1 As submitted, the appellant is charitable trust formed with the object of establishing and administering educational institutions and is particularly engaged in imparting computer knowledge in rural hinterlands of the Dakshina Kannada....

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.... however no response has been received till date. Since, the appeal has already been pending for more than 5 years; the issue is decided based on the submissions of the appellant." 7.8 The appellant accepts that it is not eligible to claim the exemption u/s 10 (23) of the IT Act 1961. However, after the same has been denied to it; the educational institution is to be treated as any other enterprise and the surplus of receipts over expenses only is to be brought to tax by the AO. 7.9 A request for examination of the same was made vide online request dated 22/07/2022 and reminder dated 20/09/2022 to the AO and Range head. However, no report has been received even after a lapse of 2 months. The AO is accordingly directed to bring to tax ....