TMI Blog1992 (9) TMI 131X X X X Extracts X X X X X X X X Extracts X X X X ..... ITO. 2. The respondent in this case runs a school in Daulatbad near Badli. It is registered under section 12A(a) of the Act with the CIT. In the course of assessment proceedings, it made a claim that its income be exempted under section 10(22) of the Act on the ground that it was an educational institution. The ITO on a perusal of the aims and objects of the institution came to the conclusion th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... allowed. In view of this situation, the ITO proceeded to levy the impugned penalty calculating it at 1 per cent of the gross income of Rs. 7,48,967. 4. Being aggrieved with the order passed by the ITO, the assessee came up in appeal before the DC (Appeals). During the course of hearing, it was contended that the assessed income was Rs. nil and that the assessee was under no obligation to file it ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... her hand, supported the order passed by the DC (Appeals) contending in the process that although the ITO had not allowed the benefit of section 10(22), the Tribunal on subsequent appeal filed by the assessee, had been pleased to do so vide order dated 26-2-1991 in ITA No. 253/Del./88. He also invited attention to the fact that even in the assessment years 1981-82 and 1982-83 the said exemption had ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... about much later as a result of the order passed by the Tribunal in Feb.'91. The position as of today however boils down to the uncontroverted fact that the assessee is enjoying the benefit of section 10(22) not only in the assessment year 1983-84, which is under appeal but also in the assessment years 1981-82 and 1982-83 once again as a result of the order passed by the Tribunal. Section 10(22) a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he penalty. The complex as of today however has changed and the assessee has the benefit of section 10(22) and its income has been computed at Rs. nil being fully exempt under the said section. Section 271(1)(a) read with section 139(4A) does not provide for any penalty for the late filing of a return by an ' educational ' institution, and which the assessee has been held to be by the Tribunal. In ..... X X X X Extracts X X X X X X X X Extracts X X X X
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