ACIT, Circle-7(1), Hyd, Hyderabad V. Maruti Cottex Ltd., Hyd, Nalgonda

ITA 30/Hyd/2016

• Counselvise Citation: [2021] 107 COUNSELVISE.COM (IT) 6055 (ITAT-HYDERABAD)
• Duration Of Justice: 5 year(s) 7 month(s) 21 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 02-09-2021
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: DB-B
• Next Hearing Date: 10-06-2021
• Assessment Year: 2011-2012
• Appeal Filed On: 11-01-2016
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Section: 271(1)(c); 201

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD BENCHES B : HYDERABAD (THROUGH VIDEO CONFERENCE) BEFORE SHRI S.S.GODARA, JUDICIAL MEMBER AND SHRI LAXMI PRASAD SAHU, ACCOUNTANT MEMBER I.T.A. NO. 30 /HYD/201 6 ASSESSMENT YEAR: 201 1 - 12 ASST. COMMISSIONER OF INCOME TAX, CIRCLE - 7 (1), HYDERABAD VS M/S MARUTI COTTEX LTD., SURVEY NO . 257, CHOUTUPPAL NALGONDA 508 252 [PAN: AABCM 3763C ] (APPELLANT) (RESPONDENT) FOR REVENUE : SHRI ROHIT MUJUMDAR, DR FOR ASSESSEE : S MT . S. SANDHYA, AR DATE OF HEARING : 10 - 0 6 - 2021 DATE OF PRONOUNCEMENT : 02 - 0 9 - 2 021 O R D E R PER S.S.GODARA, J.M. : THIS REVENUES APPEAL FOR AY.201 1 - 12 ARISES FROM THE CIT(A) - 7 , HYDERABADS ORDER DATED 2 8 - 10 - 201 5 PASSED IN CASE NO. 950 / CIT(A) - 7 / HYD / 201 4 - 15 , INVOLVING PROCEEDINGS U/S. 271(1)(C) OF THE INCOME TAX ACT, 1961 [IN SHORT, THE ACT]. 2. WE NOW ADVERT TO THE REVENUES SOLE SUBSTANTIVE GROUND AGAINST THE CIT(A) S ACTION DELETING U/S.271(1)(C) PENALTY OF RS. 64,70, 000/ - IMPOSED IN THE ASSESSING OFFICERS ORDER DT.2 8 - 0 2 - 201 4 . ITA NO. 30 /HYD/201 6 : - 2 - : 3. IT TRANSPIRES DURING THE COURSE OF HEARING AT THE OUTSET THAT THE ASSESSING OFFICERS CORRESPONDING PENALTY SHOW CAUSE NOTICE DT. 28 - 0 2 - 201 4 NOWHERE SPECIFIED AS TO WHETHER THE ASSESSEE HAD CONCEALED THE PARTICULARS OF INCOME OR FURNISHED INACCURATE PARTICULARS OF INCOME. WE QUOTE, HON'BLE JURISDICTIONAL HIGH COURTS DECISION PR.CIT VS. BAISETTY REVATHI [398 ITR 88] (TELANGANA & AP) AND MOHD.FARHAN A.SHAIKH VS. DCIT (2021) [125 TAXMANN.COM 253] (BOM) (FB) THAT SUCH A FAILURE RENDERS THE ENTIRE PENAL MECHANISM AS INVALID. WE THEREFORE UPHOLD THE CIT(A)S ACTION DELETING THE IMPUGNED PENALTY ON THIS PRECISE LEGAL ISSUE ALONE. 4. THIS REV ENUES APPEAL IS DISMISSED IN ABOVE TERMS. PRONOUNCED IN OPEN COURT ON 02 ND SEPTEMBER, 2021. SD/ - SD/ - (L.P. SAHU) (S.S. GODARA) ACCOUNTANT MEMBER JUDICIAL MEMBER DATED: THE 0 2 ND SEPTEMBER, 2021. * GMV COPY OF THE ORDER FORWARDED TO: 1. ACIT, CIRCLE 7(1), HYDERABAD 2. M/S MARUTI COTTEX LTD, SY.NO. 257, CHOUTUPPAL, NALGONDA 508 252 3. CIT(A) - 7 , HYDERABAD 4. PR.CIT - 7 , HYDERABAD 5. DR, ITAT, HYDERABAD. 6. GUARD FILE.