Dy. Commissioner of Income Tax , Circle-16(2), Hyderabad V. M/s Optiseru Muskan Service Private Limited , Hyderabad

ITA 2117/Hyd/2018

• Counselvise Citation: [2021] 108 COUNSELVISE.COM (IT) 0986 (ITAT-HYDERABAD)
• Duration Of Justice: 2 year(s) 8 month(s) 7 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 12-07-2021
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: DB-A
• Next Hearing Date: 01-06-2021
• Assessment Year: 2005-2006
• Appeal Filed On: 05-11-2018
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: N ESTHER
• Assessee Lawyers: P MURALI MOHANA RAO
• Section: 201

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD BENCHES : BENCH A HYDERABAD (THROUGH VIDEO CONFERENCE ) BEFORE SHRI S.S. GODARA, JUDICIAL MEMBER AND SHRI L.P. SAHU, ACCOUNTANT MEMBER I.T.A. NO. 2117 /HYD./201 8 A .Y : 2005 - 06 DY.CIT, CIRCLE 16(2) VS. M/S OPTISER V MUSKAN SERVICE PVT. LTD. HYDERABAD HYDERABAD [PAN: AAACO5993P ] (APPELLANT) (RESPONDENT) FOR REVENUE: SMT. N. ESTHER, D.R. FOR ASSESSEE: SHRI P. MURALI MOHANA RAO, C.A. DATE OF HEARING : 0 1 /0 6 / 2021 DATE OF PRONOUNCEMENT : 12 /0 7 /2021 O R D E R PER S.S. GODARA, J.M. TH IS REVENUES APPEAL FOR A.Y. 2005 - 06 A RISE S AGAINST THE CIT(A) - 4 HYDERABADS ORDER DATED 17.08.2018 PASSED IN CASE NO. 037/2017 - 18 , INVOLVING PROCEEDINGS U/S 271 (1)(C ) OF THE INCOME TAX ACT, 1961 [ IN SHORT THE ACT ] . HEARD BOTH THE PARTIES. CASE FILE PERUSED. 2. COMING TO THE REVENUES SOLE SU BSTANTIVE GROUND CHALLENGING CORRECTNESS OF BOTH LEARNED LOWER AUTHORITIES ACTION IMPOSING SEC. 271(1)(C ) PENALT Y OF RS. 99,00,000/ - ; WE NOTICE THAT THE ASSESSING OFFICERS CORRESPONDING SHOW ITA NO. 2117 /HYD/201 8 M/S OPTISER V MUSKAN SERVICE PVT. LTD. HYDERABAD 2 CAUSE NOTICE DATED 30 TH MARCH, 201 7 NOWHERE SPECIFIED AS TO WHETHER IT IS INSTANCE OF CONCEALMENT OF PARTICULARS OF TAXABLE INCOME OR FURNISHING OF INACCURATE PARTICULARS OF SUCH INCOME; WHATSOEVER. 3. L EARNED DR HAS STRONGLY SUPPORTED THE IMPUGNED PENALTY IMPOSED IN BOTH THE LOWER PROCEEDINGS. 4. WE FIND NO MERIT IN REVENUES INSTANT ARGUMENT SINCE NOT ONLY HONBLE JURISDICTIONAL HIGH COURT DECISION IN PR.CIT VS BAISETTY REVATHI (2017) 398 ITR 88 (T&AP) HOLDS THAT SUCH A FAILURE RENDERS SEC. 271(1)(C ) PENAL ACTION AS NOT SUSTAINABLE IN LAW BUT HONBLE BOMBAY HIGH COURTS LATEST FULL BENCH JUDGEMENT IN MOHD FARHAN A SHEIK VS. DCIT (2021) 125 TAXMAN.COM 253 (BOM.) HAS ADOPTED THE VERY LINE OF ACTION . WE FOLLOW THE SAME MUTATIS MUTANDIS AND DELETE THE IMPUGNED PENALT Y . TH IS R EVENUES APPEAL IS DISMISSED IN ABOVE TERMS. PRONOUNCED IN OPEN COURT ON 12 TH JU LY, 2021. SD/ - SD/ - (L.P. SAHU) (S.S. GODARA) ACCOUNTANT MEMBER JUDICIAL MEMBER DATED: THE 12 TH JU LY, 2021. * GMV COPY OF THE ORDER FORWARDED TO: 1. DCIT, CIRCLE 16(2), HYDERABAD 2. M/S OPTISERV MUSKAN SERVICES (P) LTD., 6 TH FLOOR, CYBER TOWERS, HI - TECH CITY, MADHAPUR, H YDERABAD, TELANGANA 3. ACIT, RANGE 1 6, HYDERABAD. 4. CIT(A) - 4 , HYDERABAD 5. PR . CIT - 4 , HYDERABAD 6. DR, ITAT, HYDERABAD. 7. GUARD FILE.