Cheraku Sarotham Reddy , Hyderabad V. Asst. Commissioner of Income Tax, Central Circle-1(1), Hyderabad

ITA 1158/Hyd/2018

• Counselvise Citation: [2021] 107 COUNSELVISE.COM (IT) 5519 (ITAT-HYDERABAD)
• Duration Of Justice: 3 year(s) 3 month(s) 13 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 17-09-2021
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB-B
• Next Hearing Date: 15-09-2021
• Assessment Year: 2009-2010
• Appeal Filed On: 04-06-2018
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: Y V S T SAI
• Assessee Lawyers: V SRILATHA
• Section: 271(1)(c); 251

Judgement Text

ITA NOS 1158 TO 1162 OF 2018 PAGE 1 OF 4 IN THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD B BENCH, HYDERABAD (THROUGH VIDEO CONFERENCING) BEFORE SHRI S.S. GODARA, JUDICIAL MEMBER AND SHRI LAXMI PRASAD SAHU, ACCOUNTANT MEMBER ITA NOS.1158 TO 1162/HYD/2018 ASSESSMENT YEARS: 2009-10 TO 2013-14 CHERAKU SAROTHAM REDDY, VILLA NO.30, OPEN SKIES, GOLDEN MILE ROAD, KOKAPET, HYDERABAD. PAN NO.ADSPC8194J. VS. THE ASSISTANT COMMISSIONER OF INCOME TAX, CENTRAL CIRCLE 1(1), HYDERABAD. (APPELLANT) (RESPONDENT) ASSESSEE BY: SMT. V. SRILATHA, AR. REVENUE BY : SRI Y.V.S.T. SAI, DR. DATE OF HEARING: 15/09/2021 DATE OF PRONOUNCEMENT: 17/09/2021 ORDER PER S. S. GODARA, J.M. THESE ASSESSEES FIVE APPEALS ITA NOS.1158 TO 1162/HYD/2018 FOR A.YS. 2009-10 TO 2013-14 ARISE FR OM THE CIT(A)-11, HYDERABADS AS MANY ORDERS; ALL DATED 28 .02.2018 PASSED IN CASE NOS.410 TO 414/2016-17/ACIT-CC-1(1) / CIT(A)- 11 HYD THEREBY CONFIRMING THE ASSESSING OFFICERS A CTION IMPOSING PENALTY OF RS.10,00,000/-, 1,90,000/-, 93,00,000/- , 63,00,000/- AND 20,00,000/- FOR THE ASSESSMENT YEARS IN PROCEED INGS U/S 271(1)(C) OF THE INCOME TAX ACT, 1961 (IN SHORT THE ACT), RESPECTIVELY. HEARD BOTH THE PARTIES. CASE FILES PERUSED. ITA NOS 1158 TO 1162 OF 2018 PAGE 2 OF 4 2. IT EMERGES AT THE OUTSET THAT THE ASSESSEES ALL FIVE INSTANT APPEALS RAISE HIS IDENTICAL SOLE SUBSTANTIV E GROUND CHALLENGING CORRECTNESS OF THE IMPUGNED PENALTY PRO CEEDINGS INVOKED U/S 271(1)(C) OF THE ACT BY BOTH LEARNED LO WER AUTHORITIES. THERE IS FURTHER NO QUARREL THAT ALL THESE PENALTIE S EMANATE FROM THE DEPARTMENT SEARCH ACTION DT.30.09.2013 UNDERTAK EN IN ASSESSEES CASE FOLLOWED BY INITIATION OF SEC.153A PROCEEDINGS VIDE NOTICE DATED 12.11.2014 CULMINATING IN THE CORRESPO NDING QUANTUM ASSESSMENTS; ALL FRAMED ON 23.03.2016. 3. WE NOTICE WITH THE ABLE ASSISTANCE COMING FROM B OTH THE SIDES THAT THE ASSESSING OFFICERS ASSESSMENT H AD MADE ADDITIONS; INVOLVING VARYING SUMS REGARDING THE DIF FERENCE IN AGRICULTURAL INCOME AS WELL AS ADDITIONAL UNDISCLOS ED INCOME WHICH WAS ALLEGEDLY UNEARTHED DURING THE COURSE OF SEARCH. WE MAKE IT CLEAR THAT THE ASSESSING OFFICER THEREAFTER ISSUED HIS IDENTICAL PENALTY NOTICES THAT ALLEGING THE ASSESSE E GO HAVE CONCEALED THE PARTICULARS OF YOUR INCOME FURNISHED, INACCURATE PARTICULARS OF SUCH INCOME. AND THAT HE THEREAFTE R DECLINED THE ASSESSEES EXPLANATION AND IMPOSED THE IMPUGNED PEN ALTIES WHICH IN TURN HAVE BEEN UPHELD IN CIT(A)S IDENTICA L LOWER APPELLATE DISCUSSION. THIS LEAVES THE ASSESSEE AGGRIEVED. 4. WE HAVE GIVEN OUR THOUGHTFUL CONSIDERATION TO RI VAL PLEADING AGAINST AND IN SUPPORT OF IMPUGNED PENALTI ES AND FIND NO REASON TO AGREE WITH THE DEPARTMENTS STAND. TH IS IS BECAUSE OF THE CLINCHING FACT THAT WE ARE DEALING WITH A SE ARCH DATED 30.09.2013 I.E. CARRIED OUT AFTER 01.06.2007 I.E., COVERED UNDER ITA NOS 1158 TO 1162 OF 2018 PAGE 3 OF 4 SEC.271(1)(C) EXPLANATION 5A PRESCRIBING THAT WHEN AN ASSESSEE IS FOUND TO BE THE OWNER OF SPECIFIED CATEGORIES OF AS SETS NOT DECLARED IN THE RETURN ALREADY FURNISHED OR HAS NOT FILED ANY RETURN WITHIN THE DUE DATE, HE SHALL BE DEEMED TO H AVE CONCEALED THE PARTICULARS OF SUCH AN INCOME OR FURNISHED INAC CURATE PARTICULARS THEREOF. WE KEEP IN MIND THIS SPECIFI C PROVISION AND NOTICE FROM A PERUSAL OF THE ASSESSING OFFICERS ID ENTICAL DETAILED DISCUSSION IN PARA 2.1 OF HIS ASSESSMENT ORDER (S) READING AS UNDER : HE WAS FOUND TO HAVE NOT MAINTAINED PROPER BOOKS O F ACCOUNTS, ALL THE RECEIPT AND EXPENDITURES ARE NOTE D DOWN IN NOTE BOOKS AND SCRIBBLING PADS. ASSESSMENTS ARE DONE AFTER TAKING INTO CONSIDERATION THE MATERI AL SEIZED FROM THE PREMISES OF THE ASSESSEE, UNDISCLOS ED INCOME ESTIMATED AND SUBSEQUENT ADMISSION BY THE ASSESSEE. MEANING THEREBY THAT THE LEARNED ASSESSING AUTHORIT Y ITSELF MAKES IT CLEAR THAT NONE OF THE SPECIFIED MATERIAL I.E., MONEY, BULLION OR JEWELLERY OR ENTRY IN BOOKS OF ACCOUNTS U/S 271(1) (C) EXPLANATION 5A IS ATTRACTED IN THE GIVEN FACTS AND CIRCUMSTANCE S BEFORE US. IT ALSO TAKES CARE OF LEARNED CIT-DRS CONTENTION IN T HE LIGHT OF HONBLE APEX COURTS DECISION IN K. P. MADHUSUDHANA N VS. CIT (2001) 251 ITR 99 (SC) THAT INVOCATION OF THE MAIN PROVISION U/S 271 ALSO INCLUDES THE EXPLANATION THEREIN. WE CONC LUDE WITH THESE FACTS AND CIRCUMSTANCES THAT THE LEARNED LOWE R AUTHORITIES HAVE ERRED IN LAW AND ON FACTS IN IMPOSING THE IMPU GNED PENALTIES IN ALL THESE ASSESSMENT ORDERS IN VIOLATI ON OF THE SPECIFIC CONDITIONS U/S 271(1)(C) EXPLANATION 5A OF THE ACT. THE SAME ARE DELETED ACCORDINGLY. ALL OTHER PLEADINGS ON MERITS ARE RENDERED INFRUCTU OUS. ITA NOS 1158 TO 1162 OF 2018 PAGE 4 OF 4 5. THESE ASSESSEES FIVE APPEALS ARE ALLOWED. A CO PY OF THIS COMMON ORDER BE PLACED IN THE RESPECTIVE CASE FILES. ORDER PRONOUNCED IN THE OPEN COURT ON 17 TH SEPTEMBER,2021. SD/- SD SD/- SD/- (LAXMI PRASAD SAHU) ACCOUNTANT MEMBER (S.S. GODARA) JUDICIAL MEMBER HYDERABAD, DATED 17 TH SEPTEMBER, 2021. TYNM / SPS COPY TO: S.NO ADDRESSES 1 CHERAKU SAROTHAM REDDY, VILLA NO.30, OPEN SKIES, GOLDEN MILE ROAD, KOKAPET, HYDERABAD. 2 THE ACIT, CENTRAL CIRCLE 1(1), HYDERABAD. 3 CI T (A) - 11 , HYDERABAD 4 PR. CIT , CENTRAL, HYDERABAD 5 DR, ITAT HYDERABAD BENCHES 6 GUARD FILE. BY ORDER