Splendid Metal Products Limited , Hyderabad V. Asst. Commissioner of Income Tax, Circle-3(2), Hyderabad

ITA 1804/Hyd/2019

• Counselvise Citation: [2021] 107 COUNSELVISE.COM (IT) 5279 (ITAT-HYDERABAD)
• Duration Of Justice: 1 year(s) 9 month(s) 11 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 24-09-2021
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB-B
• Next Hearing Date: 20-09-2021
• Assessment Year: 2015-2016
• Appeal Filed On: 13-12-2019
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Section: 143(3); 14A; 115JB

Judgement Text

ITA NO.1804/HYD/2019 1 IN THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD B BENCH, HYDERABAD (THROUGH VIDEO CONFERENCING) BEFORE SHRI S.S. GODARA, JUDICIAL MEMBER AND SHRI INTURI RAMA RAO, ACCOUNTANT MEMBER ITA NO.1804/HYD/2019 ASSESSMENT YEAR: 2015-16 SPLENDID METAL PRODUCTS LIMITED, C/O. P MURALI & CO. CHARTERED ACCOUNTANTS, 6-3-655/2/3, SOMAJIGUDA, HYDERABAD 500082. PAN : AACCS8614H. VS. THE ASSISTANT COMMISSIONER OF INCOME TAX, CIRCLE 3(2), HYDERABAD. (APPELLANT) (RESPONDENT) ASSESSEE BY: SHRI M.V. JOSHI AR. REVENUE BY : SHRI ROHIT MUJUMDAR FOR SRIKANTH DR. DATE OF HEARING: 20/09/2021 DATE OF PRONOUNCEMENT: 24/09/2021 O R D E R PER BENCH : THIS ASSESSEES APPEAL FOR AY. 2015-16 ARISES FROM THE CIT(A)-3, HYDERABADS ORDER DATED 07.06.2019 PASSED IN CASE NO.10325/DCIT-3(2)/HYD/CIT(A)-3/2018-19 INVOLVING P ROCEEDINGS U/S. 271(1)(B) OF THE INCOME TAX ACT, 1961 [IN SHOR T, THE ACT]. HEARD BOTH PARTIES. CASE FILE(S) PERUSED. 2. COMING TO THE ASSESSEES SOLE SUBSTANTIVE GRIEVA NCE THAT BOTH THE LOWER AUTHORITIES HAVE ERRED IN LAW AND ON FACTS IN IMPOSING SEC 271(1)(B) PENALTY OF RS.10,000/- ALLEG ING NON- COOPERATION DURING SCRUTINY, WE NOTE AT THE OUTSET THAT WITH THE ITA NO.1804/HYD/2019 2 ABLE ASSISTANCE COMING FROM THE TAXPAYER AS WELL A S THE REVENUE SIDE THAT THE ASSESSING OFFICER HAD IN FACT FRAMED SEC 143(3) ASSESSMENT ONLY ON 13.12.2017 MAKING SEC 36(1)(III) INTEREST, ESIPF AND SEC 14A R.W.R 8D DISALLOWANCE (ES) OF RS. 2,25,96,530/-, RS.60,15,206/- AND RS.72,54,845/-. COUPLED WITH THI S, HE HAD FURTHER ADDED AN AMOUNT OF RS.72,54,845/- AS MAT AD JUSTMENT U/S 115JB OF THE ACT. 3. FACED WITH THIS SITUATION, LEARNED DEPARTMENTAL REPRESENTATIVE FAILS TO REBUT THE CLINCHING FACT TH AT THE ASSESSEE APPEARS TO HAVE FILED ALL THE RELEVANT DETAILS DURI NG THE SCRUTINY ITSELF ON THE BASIS OF WHICH THE AO HAD DISALLOWED / ADDED THE FOREGOING SUMS AS PER THE CASE FILE. WE CONCLUDE I N THESE FACTS AND CIRCUMSTANCES THAT BOTH HE LEARNED LOWER AUTHORITIE S HAVE ERRED IN IMPOSING THE PENALTY ALLEGING NON-COOPERATION DUR ING SCRUTINY U/S 271(1)(B) OF THE ACT. THE SAME IS DIRECTED TO BE DELETED THEREFORE. 4. THIS ASSESSEES APPEAL IS ALLOWED. ORDER PRONOUNCED IN THE OPEN COURT ON 24 TH SEPTEMBER,2021. SD/- SDSD SD/- SD/- (INTURI RAMA RAO) ACCOUNTANT MEMBER (S.S. GODARA) JUDICIAL MEMBER HYDERABAD, DATED 24 TH SEPTEMBER, 2021. TYNM / SPS ITA NO.1804/HYD/2019 3 COPY TO: S. NO ADDRESS ES 1 SPLENDID METAL PRODUCTS LIMITED, C/O. P MURALI & C O. CHARTERED ACCOUNTANTS, 6-3-655/2/3, SOMAJIGUDA, HYDERABAD 500082. 2 T HE ASST. COMMISSIONER OF IN COME TAX , CIRCLE 3( 2), HYDERABAD. 3 THE CIT(A)-3, HYDERABAD. 4 THE PR.CIT(3), HYDERABAD. 5 DR, IT AT HYD ER ABAD BEN CHES 6 GUARD FILE . BY ORDER