Ravneet Gill, Hyderabad V. Income Tax Officer, Ward-12(5), Hyderabad

ITA 1111/Hyd/2019

• Counselvise Citation: [2020] 110 COUNSELVISE.COM (IT) 2702 (ITAT-HYDERABAD)
• Duration Of Justice: 1 year(s) 4 month(s) 20 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 25-11-2020
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Assessment Year: 2015-2016
• Appeal Filed On: 05-07-2019
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: SUNIL KUMAR PANDEY
• Keywords: Set aside
• Section: 271(1)(c)

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD BENCHES SMC, HYDERABAD (THROUGH VIDEO CONFERENCE) BEFORE SMT. P. MADHAVI DEVI, JUDICIAL MEMBER I.T.A. NO. 1111/HYD/2019 ASSESSMENT YEAR: 2015-16 SMT. RAVNEET GILL, HYDERABAD [PAN: AHTPG7954R] VS THE INCOME TAX OFFICER, WARD-12(5), HYDERABAD (APPELLANT) (RESPONDENT) FOR ASSESSEE : SHRI T.CHAITANYA KUMAR, AR FOR REVENUE : SHRI SUNIL KUMAR PANDEY, DR DATE OF HEARING : 24-11-2020 DATE OF PRONOUNCEMENT : 25-11-2020 O R D E R THIS IS ASSESSEES APPEAL FOR THE AY.2015-16, DIRECT ED AGAINST THE ORDER OF THE COMMISSIONER OF INCOME TAX (APPEALS)1, HYDERABAD, DATED 16-05-2019, CONFIRMING PENALTY LEVIED BY THE ASSESSING OFFICER (AO) U/S.271(1)(C) OF THE INCOME TAX ACT [ACT]. 2. THE CASE IS TAKEN UP FOR HEARING ON 24-11-2020 THR OUGH VIDEO CONFERENCING AND BOTH THE PARTIES WERE HEARD. 3. THE GROUNDS RAISED BY ASSESSEE ARE AS UNDER: 1. THE ORDER OF THE LD.CIT(A) IS ERRONEOUS BOTH IN LAW AND ON THE FACTS OF THE CASE. 2. THE LEARNED COMMISSIONER OF INCOME-TAX (APPEALS) ERRED IN CONFIRMING THE ACTION OF THE ASSESSING OFFICER IN L EVYING PENALTY AN AMOUNT OF RS.2,27,204/- U/S.271(1)(C) OF THE I.T AC T. WITHOUT ITA NO. 1111/HYD/2019 :- 2 -: CONSIDERING THE FACT THE ASSESSING OFFICER NOT MENT IONED IN WHICH LIMB THE PENALTY U/S.274 R.W.S.271(1)(C) OF THE I. T.ACT. 3. THE LEARNED COMMISSIONER OF INCOME-TAX (APPEALS) ERRED IN CONFIRMING THE ACTION OF THE ASSESSING OFFICER IN L EVYING PENALTY AN AMOUNT OF RS. 2,27,204/- U/S.271(1)(C) OF THE I.T A CT WITHOUT CONSIDERING THE FACTS OF THE CASE. 4. ANY OTHER GROUND OR GROUNDS AT THE TIME OF HEARI NG WITH THE LEAVE OF THE HON'BLE TRIBUNAL. 4. AS SEEN FROM THE GROUNDS, THE ASSESSEE IS CHALLEN GING THE VALIDITY OF NOTICE ISSUED U/S.271(1)(C) OF THE ACT, BECAUSE THE AO HAS NOT STRUCK-OFF THE IRRELEVANT PORTION OF THE NO TICE DT.28-12-2017 FOR LEVY OF PENALTY U/S.271(1)(C) OF TH E ACT. HE FURTHER SUBMITTED THAT THE AO HAS NOT EXPRESSED HIS SATISFACTION EITHER IN THE ASSESSMENT ORDER OR IN THE N OTICE U/S.274 R.W.S. 271(1)(C) OF THE ACT FOR INITIATING THE PENALTY PROCEEDINGS. IN SUPPORT OF HIS CONTENTIONS, THE LD COUN SEL FOR THE ASSESSEE PLACED RELIANCE UPON THE DECISION OF THE HON'BLE SUPREME COURT IN THE CASE OF CIT & ANR. VS. SSAS EME RALD MEADOWS (IN SLP NO. 11485/2016 DATED 05-08-2016) REP ORTED IN 2016 (8) TMI 1145 SUPREME COURT, WHEREIN THE D ECISION OF THE HON'BLE HIGH COURT OF KARNATAKA IN THE CASE OF CI T & ANR. VS. MANJUNATHA COTTON & GINNING FACTORY [359 ITR 565] H AS BEEN UPHELD. FURTHER, HE ALSO PLACED RELIANCE UPON TH E DECISION OF THE JURISDICTIONAL HIGH COURT IN THE CASE OF PR.CIT VS. BAISETTY REVATHI IN ITA NO.684 OF 2016, DATED 13. 07.2017. 5. THE LD.DR, ON THE OTHER HAND, SUPPORTED THE ORDER OF THE AO. ITA NO. 1111/HYD/2019 :- 3 -: 6. HAVING REGARD TO THE RIVAL CONTENTIONS AND MATERIAL ON RECORD, I FIND THAT THE ASSESSMENT ORDER WAS PASSED EX-PARTE AND THE CIT(A) AND THE AO HAVE NOT MENTIONED ANY REASON FOR INITIATING THE PENALTY U/S.271(1)(C) OF THE ACT. FURTHE R AS SEEN FROM THE COPY OF THE NOTICE ISSUED U/S.274 R.W.S.271( 1)(C) OF THE ACT, THE AO HAS NOT STRUCK-OFF THE IRRELEVANT PORTION IN THE NOTICE I.E., WHETHER THE PENALTY IS BEING LEVIED FOR C ONCEALMENT OF INCOME OR FOR FURNISHING OF INACCURATE PARTICULARS OR FOR BOTH. IN VIEW OF THE SAME, RESPECTFULLY FOLLOWING THE DECISION OF THE HON'BLE SUPREME COURT IN THE CASE OF CIT VS. SSAS EMERALD MEADOWS (SUPRA) AND ALSO THE DECISION OF THE JURISDICTIONAL HIGH COURT IN THE CASE OF PR.CIT VS. BA ISETTY REVATHI (CITED SUPRA), THE PENALTY ORDER PASSED BY TH E AO IS SET ASIDE. ACCORDINGLY, THE APPEAL OF ASSESSEE IS AL LOWED. ORDER PRONOUNCED IN THE OPEN COURT ON 25 TH NOVEMBER, 2020 SD/- (P. MADHAVI DEVI) JUDICIAL MEMBER HYDERABAD, DATED: 25-11-2020 TNMM ITA NO. 1111/HYD/2019 :- 4 -: COPY TO : 1. SMT. RAVNEET GILL, C/O. SHRI T.CHAITANYA KUMAR, ADVOCATE, FLAT NO. 102, GOWRI APARTMENTS, H.NO.3-6- 195/B, URDU HALL LANE, HIMAYATNAGAR, HYDERABAD. 2. THE INCOME TAX OFFICER, WARD-12(5), HYDERABAD. 3. CIT(APPEALS)-1, HYDERABAD. 4. PR.CIT-1, HYDERABAD. 5. D.R. ITAT, HYDERABAD. 6. GUARD FILE.