Appeal details
Counselvise Citation
[2014] 140 COUNSELVISE.COM (IT) 74538 (ITAT-HYDERABAD)
Assessee PAN
Bench
Appeal Number
Duration Of Justice
4 month(s) 7 day(s)
Appellant
Respondent
Appeal Type
Income Tax Appeal
Pronouncement Date
04-02-2014
Appeal Filed By
Department
Order Result
Dismissed
Bench Allotted
A
Assessment Year
2002-2003
Appeal Filed On
27-09-2013
Judgement Text
IN THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD BENCH A', HYDERABAD BEFORE THE HONBLE VICE PRESIDENT, SHRI D.MANMOHAN AND SHRI B.RAMAKOTAIAH, HONBLE ACCOUNTANT MEMBER ITA NO. 13 1 8 /HYD/2013 : ASST. YEAR 20 0 2 - 03 ITA NO. 13 19 /HYD/2013 : ASST. YEAR 20 0 5 - 0 6 DY, COMMISSIONER OF INCOME - TAX , CIRCLE 6(1 ) , HYDERABAD. V/S. SHRI V.RAMACHANDRA RAO, HYDERABAD ( PAN - A B KPV 9548 H) (APPELLANT) (RESPONDENT) APPELLANT BY : S MT. K.HARITHA DR RESPONDENT BY : SHRI T.CHAITANYA KUMAR DATE OF HEARING 4 . 2 .201 4 DATE OF PRONOUNCEMENT 4 .2.2014 O R D E R PER D.MANMOHAN, VICE PRESIDENT: TH ESE TWO APPEALS ARE FI L E D BY THE R E VEN U E AND T H E Y ARE DI R ECTED AGAINST THE ORDERS PASSED BY THE COMMISSIONER OF INCOME - TAX (APPEALS) - IV, HYDERABAD BOTH DATED 10.7.2 0 13 . 2. PENAL T Y LEVIED BY THE ASSESSING OFFICER UNDER S.271(1)(C) OF THE A C T, HAVING BEEN DELETED BY T H E CIT(A) , R E VENUE IS IN APPEAL BEFORE US. THE COMMON GROUNDS OF THE R E VENUE ARE EXTRACTED BELOW - 1. THE LEARNED CIT(A) ERRED BOTH IN LAW AND ON FA C TS . 2 . THE LEARNED CIT(A) OUGHT TO HAVE SUSTAINED THE PENALTY LEVIED U/S. 271(1)( C ) OF THE I.T. A C T. 3. THE LEARNED CIT(A) OUGHT TO HAVE AP P RE CIATED THE FACT THAT THE A SSESSEE FAI LED TO PRODUCE AN Y EVIDENCE F O R CASH LOAN WHICH WAS STA T ED TO B E RECEIVED FROM HUF STATUS OUT OF AG R I C U LTURAL OPERATIONS . 4. THE LEARNED CIT(A) OUGHT TO HAVE APPRECIATED THE FACT THAT THE ASSESSEE H A S CRE ATE D FICTIT IOUS SOURCE FOR THE CASH LOAN RECEIVED TO SU B S TAN TIATE A BOGUS CLAIM, WHICH QUITE FALLS WITHIN T H E MEANING OF TER M SUBMITTING INACCU RATE PARTICU L A RS . 5. . ITA NO. 13 18 - 19 / HYD/ 2013 SHRI V.RAMACHANDRA RAO, HYDERABAD 2 3. A T THE TI M E OF H E ARING, LEARNED COUNSEL PLACED BEFORE US, A COPY OF THE CONSOLIDATED ORDER O F THE TR IBUNAL B BENCH, HYDERABAD , AMONG OTHERS IN ITA NOS.914/HYD/2011 FOR ASSESSMENT YEAR 2002 - 03 AND 916/ H YD/2011 FOR ASSESSMENT YEAR 20 0 5 - 06. , WHEREIN THE TRIBUNAL FOR THE YEARS UNDER C ONSIDERATION, SET ASIDE THE ADDITIONS MADE, W ITH A DIR E CTION TO RECO N S I D ER THE SAME IN ACCO R D ANCE WITH LAW. SI N C E THE VER Y BASIS UPON WHICH THE PENALTY WAS LEVIED NO LONGER SUBSISTS, HE SUBMITTED THAT NO CASE WAS MADE OUT BY THE R E VENUE WITH REGARD TO L E VY OF PENALTY. 4. ON THE OTHER HAND, LEARNED DEPARTMENTAL REPRESENTATIVE SUBM I T TED THAT THE QUANTUM PROCEEDINGS WERE SET AS I DE AND HENCE, THE PENALTY PROCEEDINGS ALSO DESERVES TO B E SET ASIDE. 5. WE HAVE CAREFULLY CONS IDERED THE RI V AL SU B M I S SIO N S AND P E R U SED THE RECORD. ADM ITTEDLY, QUANTUM PROCEEDINGS WERE SET ASIDE. H ENCE, AS F A R AS PENALTY L E VIED CONS E Q U E N T TO THE ADDITIONS MADE BY THE ASSESSING OFFICER , AS ON TODAY, PENALTY PROCEEDINGS DESERVES TO BE QUASHED/SET AS IDE. U N D ER T H E SE CIRCUMSTANCES , THE VIEW T AKEN BY THE LEARNED CIT(A) DESERVES TO B E SUSTAINED. WE HO L D ACCO RDINGLY . NEEDLESS TO OBSERVE THAT THE ASSESSING OFFICER IS AT LIBERTY TO INIT I ATE FRESH PENALTY P ROCEEDI NGS, IF NEED BE, IN THE EVENT OF MAKING FRESH ASSESSMENT S, BY REPEATING THE ADDITIONS AND ALSO UPON FI N D ING SUFFICIENT MATERIAL T O PROVE THAT THE AMOUNTS SOUGHT TO B E ADDED IS ON ACCOUNT O F CO N C EALM E NT OF I N C O M E BY THE ASSESSEE . WITH T H E SE O B S ERVATIO N S , THE APPEALS FIL E D BY THE R E VENUE ARE DISMISSED, AS PRONOUNCED IN THE OPEN COURT. 6 . IN THE RESULT, REVENUES APPEAL S ARE DISMISSED. ORDER PRONOUNCED IN THE COURT ON 4 .2.2014 SD/ - SD/ - ( B.RAMAKOTAIAH ) (D.MANMOHAN) ACCOUNTANT MEMBER VICE PRESIDENT DT/ - 4 TH FEBRUARY 201 4 ITA NO. 13 18 - 19 / HYD/ 2013 SHRI V.RAMACHANDRA RAO, HYDERABAD 3 COPY FORWARDED TO: 1. SHRI V.RAMACHANDRA RAO, 8 - 2 - 686/8/2, ROAD NO.12, BANJARA HILLS, HYDERABAD 2 . DY. COMMISSIONE R OF INCOME - TAX CIRCLE 6(1), HYDERABAD 3 . 4 . COMMISSIONER OF INCOME - TAX(APPEALS) I V , HYDERABAD COMMISSIONER OF INCOME - TAX I II HYDERABAD 5 . DEPARTMENTAL REPRESENTATIVE, ITAT, HYDERABAD. B.V.S
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