ACIT, Cir-4(1), Hyderabad V. Shri A. Sudhakar Reddy, Hyderabad

ITA 1232/HYD/2011

• Counselvise Citation: [2011] 140 COUNSELVISE.COM (IT) 53718 (ITAT-HYDERABAD)
• Duration Of Justice: 4 month(s) 7 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 04-11-2011
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: B
• Assessment Year: 2007-2008
• Appeal Filed On: 27-06-2011
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: B V PRASAD REDDY
• Assessee Lawyers: S RAMA RAO

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD BENCH B ', HYDERABAD BEFORE SHRI G.C.GUPTA, VICE PRESIDENT AND SHRI CHANDRA POOJARI, ACCOUNTANT MEMBER ITA NO.1232/HYD/2011 : ASSESSMENT YEAR 2007-08 ASSTT. COMMISSIONER OF INCOME- TAX, CIRCLE 4(1), HYDERABAD V/S. SHRI A.SUDHAKAR REDDY, HYDERABAD ( PAN - ADOPA 2613 B) (APPELLANT) (RESPONDENT) APPELLANT BY : SHRI B.V.PRASAD REDDY RESPONDENT BY : SHRI S.RAMA RAO DATE OF HEARING 13.10.2011 DATE OF PRONOUNCEMENT 4.11.2011 O R D E R PER G.C.GUPTA, VICE PRESIDENT: THIS APPEAL BY THE REVENUE FOR THE ASSESSMENT YEA RS 2007-08 IS DIRECTED AGAINST THE ORDER OF THE CIT(A). 2. GROUNDS OF THE REVENUE IN THIS APPEAL ARE AS U NDER- 1. THE LEARNED CIT(A) ERRED BOTH N LAW AND ON FACT S 2. THE LEARNED CIT(A) ERRED IN NOT CONFIRMING THE PENALTY L LEVIED UNDER SECTION 271(1)(C) OF I.T. ACT. 3. THE LEARNED CIT(A) OUGHT TO HAVE APPRECIATED THA T THE ASSESSEE WOULD NOT HAVE ADMITTED THE INCOME IF NO S URVEY WAS CONDUCTED IN THE CASE. ITA NO.1232/HYD/2011 SHRI A.SUDHAKAR REDDY, HYDERABAD 2 4. THE LEARNED CIT(A) OUGHT TO HAVE APPRECIATED THA T THE ASSESSEE HAS NOT FILED ANY INFORMATION REGARDING TH E EXPENSES INCURRED ON THE STATE OF JHARKHAND. 3. LEARNED DEPARTMENTAL REPRESENTATIVE HAS RELIED ON THE ORDER OF THE ASSESSING OFFICER. HE REFERRED TO THE RELEVANT PARAS OF THE PENALTY ORDER PASSED BY THE ASSESSING OFFICER IN SUPPORT OF THE CASE OF THE REVENUE IN IMPOSING THE PENALTY UNDER S.271(1)(C) OF THE ACT. 4. THE LEARNED COUNSEL FOR THE ASSESSEE SUBMITTED THAT THE ISSUE OF VALIDITY OF PENALTY LEVIED UNDER S.271(1)(C) OF TH E ACT IS COVERED WITH THE DECISION OF THE HYDERABAD BENCH OF THE TRIBUNAL IN ASSESSEES OWN CASE FOR THE IMMEDIATELY PRECEDING ASSESSMENT YEAR 2006-07 I N ITA NO.1307/HYD/2010, DATED 30 TH JUNE, 2011, WHEREIN, ON IDENTICAL FACTS, THE ORDER OF THE CIT(A) IN CANCELLING THE PENALTY LEVIE D UNDER S.271(1)(C) WAS CONFIRMED BY THE TRIBUNAL. 5. WE HAVE CONSIDERED THE RIVAL SUBMISSIONS. WE F IND THAT THE ISSUE OF VALIDITY OF PENALTY IN THIS CASE IS COVERE D IN FAVOUR OF THE ASSESSEE WITH THE DECISION OF THE HYDERABAD BENCH OF THE TRI BUNAL IN ASSESSEES OWN CASE FOR THE EARLIER ASSESSMENT YEAR 2006-07 CITED SUPRA, WHEREIN IN SIMILAR CIRCUMSTANCES, THE TRIBUNAL CONFIRMED THE ORDER OF THE CIT(A) IN CANCELLING THE PENALTY LEVIED UNDER S.271(1)(C) OF THE ACT. TH IS IS A CASE WHERE THE ASSESSEE HAS EXECUTED THE CONTRACT WORKS IN 800 REM OTE VILLAGES IN THE STATE OF JHARKHAND, WHERE THERE IS ABSENCE OF PROPE R ROADS AND TRANSPORTATION FACILITIES, ETC. AND THE LAW AND ORD ER SITUATION WAS NOT GOOD. THE TRIBUNAL HAS OBSERVED IN THE REVENUES APPEAL F OR THE EARLIER ASSESSMENT YEAR 2006-07 THAT MERELY BECAUSE THE AS SESSEE COULD NOT SUBSTANTIATE ITS CLAIM OF EXPENSES WITH DOCUMENTARY EVIDENCE, IT COULD NOT BE SAID THAT THE ASSESSEE WAS GUILTY OF CONCEALMENT OF INCOME OR FILING OF INACCURATE PARTICULARS OF INCOME. IN THESE FACTS, WE A CONFIRM THE ORDER OF ITA NO.1232/HYD/2011 SHRI A.SUDHAKAR REDDY, HYDERABAD 3 THE CIT(A) AND THE GROUNDS OF APPEAL OF THE REVENUE , BEING WITHOUT ANY MERIT, ARE REJECTED. 6. IN THE RESULT, REVENUES APPEAL IS DISMISSED. ORDER PRONOUNCED IN THE COURT ON 4 TH NOVEMBER, 2011 SD/- SD/- ( CHANDRA POOJARI) (G.C.GUPTA) ACCOUNTANT MEMBER VICE PRESIDENT DT/- 4 TH NOVEMBER, 2011 COPY FORWARDED TO: 1. SHRI A.SUDHAKAR REDDY, C/O. SHRI S.RAMA RAO, FLAT NO.102, SHIRYA'S ELEGANCE, NO.3-6-643, STREET NO.9, HIMAYATNAGAR, HYDERABAD 500029 2. ASSTT. COMMISSIONER OF INCOME - TAX, CIRCLE 4(1), HYDERABAD 3. COMMISSIONER OF INCOME-TAX(APPEALS) V HYDERABAD 4. COMMISSIONER OF INCOME TAX IVI, HYDERABAD 5. DEPARTMENTAL REPRESENTATIVE, ITAT, HYDERABAD. B.V.S.