Income Tax Officer, Ward-15(2), Hyderabad V. B.Shankar , Hyderabad

ITA 1763/Hyd/2019

• Counselvise Citation: [2021] 108 COUNSELVISE.COM (IT) 4783 (ITAT-HYDERABAD)
• Duration Of Justice: 1 year(s) 5 month(s) 14 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 19-05-2021
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: DB-A
• Assessment Year: 2007-2008
• Appeal Filed On: 05-12-2019
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: SUNIL KUMAR PANDEY
• Assessee Lawyers: G SUDHAKAR RAO
• Keywords: Cost of acquisition
• Section: 271(1)(c); 292BB; 274

Judgement Text

ITA NO 1763 OF 2019 B SHANKAR HYDERABAD PAGE 1 OF 3 IN THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD A BENCH, HYDERABAD (THROUGH VIDEO CONFERENCING) BEFORE SMT. P. MADHAVI DEVI, JUDICIAL MEMBER AND SHRI LAXMI PRASAD SAHU, ACCOUNTANT MEMBER ITA NO.1763/HYD/2019 ASSESSMENT YEAR: 2007-08 INCOME TAX OFFICER WARD 15(2) HYDERABAD VS. SRI B. SHANKAR HYDERABAD PAN:ASFPB5310D (APPELLANT) (RESPONDENT) REVENUE BY: SRI SUNIL KUMAR PANDEY, DR ASSESSEE BY : SRI G. SUDHAKAR RAO DATE OF HEARING: 06/05/2021 DATE OF PRONOUNCEMENT: 19/05/2021 ORDER PER SMT. P. MADHAVI DEVI, J.M. THIS IS REVENUES APPEAL FOR THE A.Y 207-08 AGAINST THE ORDER OF THE CIT (A)-7, HYDERABAD, DATED 26.9.2 019 DELETING THE PENALTY LEVIED BY THE ASSESSING OFFICER U/S 271 (1)(C) OF THE ACT. 2. BRIEF FACTS OF THE CASE ARE THAT IT HAD COME TO THE KNOWLEDGE OF THE ASSESSING OFFICER THAT THE ASSESSE E INDIVIDUAL ALONG WITH THREE OTHERS HAD ENTERED INTO TRANSACTIO N OF PURCHASE AND SALE OF LAND AND IN THE PROCESS HAS RECEIVED A SUM OF RS.87,50,000/- OVER AND ABOVE PURCHASE COST AND ALS O THAT HE HAD INVESTED A SUM OF RS.1,86,25,000/- FOR PURCHASE OF LAND. BUT THE ASSESSEE HAS NOT FILED ANY RETURN OF INCOME AND HAS NOT OFFERED ANY INCOME TO TAX. THEREFORE, THE ASSESSING OFFICER REOPENED THE ASSESSMENT OF THE ASSESSEE AND BROUGHT THE SUM OF ITA NO 1763 OF 2019 B SHANKAR HYDERABAD PAGE 2 OF 3 RS.2,73,75,000/- TO TAX. THEREAFTER, THE ASSESSING OFFICER INITIATED PENALTY PROCEEDINGS U/S 271(1)(C) OF THE ACT BY ISS UING THE NOTICE U/S 274 OF THE ACT. SINCE THE ASSESSEE DID NOT FILE ANY REPLY, HE LEVIED MINIMUM PENALTY I.E., 100% OF THE TAX SOUGHT TO BE EVADED, I.E., RS.91,58,325/-. AGGRIEVED, THE ASSESSEE PREFE RRED AN APPEAL TO THE CIT (A), WHO DELETED THE PENALTY. AGAINST TH E RELIEF GRANTED BY THE CIT (A), THE REVENUE IS IN APPEAL BEFORE US BY RAISING THE FOLLOWING GROUNDS OF APPEAL: 1) THE ORDER OF THE HON'BLE CIT (A) IS ERRONEOUS B OTH ON FACTS AND AS WELL AS ON LAW. 2) THE HON'BLE CIT (A) ERRED IN DELETING THE PENALT Y DESPITE THE FACT THAT THE QUANTUM ADDITION LEADING TO THE L EVY OF PENALTY WAS SUSTAINED AT 1 ST APPEAL STAGE AND IS ALIVE. 3) THE DECISION OF THE CIT (A) IS NOT ACCEPTABLE IN VIEW OF SECTION 292BB WHEREIN THE ASSESSEE HAS NOT RAISED A NY OBJECTION DURING THE COURSE OF PENALTY PROCEEDINGS AND CLAIM LATER THAT THE NOTICE WAS IMPROPER AND DEFECT IVE. 4) THE APPELLANT CRAVES TO ADD, AMEND, ALTER ANY OF THE GROUNDS OF APPEAL DURING THE PROCEEDINGS WITH PRIOR PERMISSION OF THE HON'BLE ITAT. 3. AFTER HEARING BOTH THE PARTIES, WE FIND THAT THE CIT (A) HAS GRANTED RELIEF TO THE ASSESSEE ON THE GROUNDS T HAT THE NOTICE FOR LEVY OF PENALTY U/S 271(1)(C) DID NOT MENTION T HE SPECIFIC GROUND FOR WHICH THE PENALTY HAS BEEN INITIATED. WE FIND THAT THE CIT (A) HAS FOLLOWED THE DECISION OF THE HON'BLE KA RNATAKA HIGH COURT IN THE CASE OF MANJUNATHA COTTON & GINNING FA CTORY (359 ITR 565) AS WELL AS THE DECISION OF THE HON'BL E JURISDICTIONAL HIGH COURT IN THE CASE OF PR.CIT VS. SMT. BAISETTY REVATHI IN ITTA NO.684/2016 DATED 13.7.2017 FOR GRANTING RELIEF TO THE ASSESSEE. AS THE DECISION OF THE CIT (A) IS IN ACCORDANCE WIT H THE PRECEDENTS ON THE ISSUE, PARTICULARLY THE DECISION OF THE HON' BLE JURISDICTIONAL ITA NO 1763 OF 2019 B SHANKAR HYDERABAD PAGE 3 OF 3 HIGH COURT, WE DO NOT SEE ANY REASON TO INTERFERE W ITH THE ORDER OF THE CIT (A). THE REVENUES APPEAL IS ACCORDINGLY DI SMISSED. 4. IN THE RESULT, REVENUES APPEAL IS DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON 19 TH MAY, 2021. SD/- SD/- (LAXMI PRASAD SAHU) ACCOUNTANT MEMBER (P. MADHAVI DEVI) JUDICIAL MEMBER HYDERABAD, DATED 19 TH MAY, 2021. VINODAN/SPS COPY TO: S.NO ADDRESSES 1 INCOME TAX OFFICER, WARD 15(2), 5 TH FLOOR, D BLOCK, IT TOWERS, AC GUARDS, MASAB TANK, HYDERABAD 2 SRI B. SHANKAR, HOUSE NO.2 - 9 - 77 , UPPAL, HYDERABAD 3 CIT (A) - 7, HYDERABAD 4 PR. CIT -7, HYDERABAD 5 DR, ITAT HYDERABAD BENCHES 6 GUARD FILE BY ORDER