Jt. Commissioner of Income Tax(OSD), Central Circle -2(1), Hyderabad V. Sree Nagendra Constructions, Khammam

ITA 302/Hyd/2019

• Counselvise Citation: [2021] 108 COUNSELVISE.COM (IT) 7015 (ITAT-HYDERABAD)
• Duration Of Justice: 2 year(s) 1 month(s) 2 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 09-04-2021
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: DB-B
• Assessment Year: 2013-2014
• Appeal Filed On: 07-03-2019
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: ROHIT MUZUMDAR
• Assessee Lawyers: P MURALI MOHANA RAO
• Section: 250; 201

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD B BENCH : HYDERABAD (THROUGH VIDEO CONFERENCE) BEFORE SHRI S.S. GODARA, JUDICIAL MEMBER AND SHRI L.P. SAHU, ACCOUNTANT MEMBER ITA NO. 302 /HYD./2019 ASSESSMENT YEAR: 201 3 - 14 JCIT (OSD) VS. M/S SREE NAGENDRA CONSTRUCTIONS CENTRAL CIRCLE 2(1) KHAMMAM HYDERABAD. [PAN: AAUFS4784M] (APPELLANT) (RESPONDENT) FOR ASSESSEE : SRI P. MURALI MOHANA RAO, AR FOR REVENUE : SH. ROHIT MUZUMDAR, CIT - D.R. DATE OF HEARING : 15/02/2021 DATE OF PRONOUNCEMENT : 09 /04/2021 O R D E R PER S.S. GODARA, J.M. THIS REVENUES APPEAL FOR AY 201 3 - 14 ARISES AGAINST THE CIT(A) - 1 2 , HYDERABADS ORDER DATED 28.12.2018 IN CASE NO.10 001 /201 7 - 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. ITA NO. 302/HYD/2019 JCIT(OSD), CENTRAL CIRCLE 2(1) VS M/S SREE NAGENDRA CONSTRUCTIONS 2 2. REVENUE HAS PLEADED THE FOLLOWING SUBSTANTIVE GROUNDS IN THE INSTANT APPEAL. 1. WHETHER ON THE FACTS AND CIRCUMSTANCES OF THE CASE AND IN LAW THE LD.C I T(A) ERRED IN CANCELLING THE PENALTY IMPOSED U/S.271(1)(C) FOLLOWING THE JUDGEMENT IN CASE OF CIT VS M /S. BAISETTY REVATHY 398 ITR 88 WHEREIN THE SET OF FACTS IN THE PRESENT CASE WERE ENTIRELY DIFFERENT FROM THE FACTS IN THE DECISION RELIED UPON. 2. WHETHER ON THE FACTS AND CIRCUMSTANCES OF THE CASE AND IN LAW THE LD. CIT(A) ERRED IN NOT APPRECIATING THE FACT THAT THE PENALTY WAS NOT ONLY INITIATED FOR BOTH THE LIMBS OF SECTION 271(1)(C), BUT WAS ALSO LEVIED ON ACCOUNT OF BOTH LIMBS OF THE SECTION. 3. WHETHER ON THE FACTS AND CIRCUMSTANCES OF THE' CASE AND IN LAW THE LD. CIT(A) ERRED IN CANCELLING THE PEN ALTY WITHOUT APPRECIATING THE FACT THAT, THE ASSESSEE'S APPEAL AGAINST QUANTUM OF ADDITION WAS DISMISSED BY LD. CT(A). 4. THE APPELLANT CRAVES LEAVE TO AMEND OR ALTER ANY GROUND OR ADD ANY OTHER GROUNDS WHICH MAY BE NECESSARY. 2.1 . A FAIR PERUSAL OF THE REVENUE S ABOVE EXTRACTED GROUNDS SUGGEST THAT IT'S SOLE SUBSTANTIVE GRIEVANCE SEEKS TO REVERSE THE CI T(A)S ACTION DELETING SEC. 271 (1)(C) PENALTY OF RS. 50,69,300/ - IMPOSED BY THE A SSESSING OFFICER IN HIS ORDER DATED 28 . 3.2018. IT IS NOTICE D AT THE OUTSET THAT THE A SSESSING OFFICERS PENALTY NOTICE DATED 25TH JANUARY , 2016 HAD NOWHERE SPECIFIED AS TO IN WHICH LIMB SEC.271 (1)(C) HAD BEEN INVOKED THEREIN I.E. CONCEALMENT OF PARTICULARS OF INCOME O R FURNISHING OF INACCURATE PARTICULARS OF SUCH INCOME. IT IS IN THIS FACTUAL BACKDROP THAT C IT(A) HAS GONE BY HONORABLE JURISDICTIONAL HIGH COURT S DECISION ( SUPRA ) TO DELETE IMPUGNED PENALTY. ITA NO. 302/HYD/2019 JCIT(OSD), CENTRAL CIRCLE 2(1) VS M/S SREE NAGENDRA CONSTRUCTIONS 3 2.2. M R. M UJUMDAR HAS FILED THE FOLLOWING DECISIONS : I. EARTHMOVING EQUIPMENT SERVICE CORPORATION, ITAT, MUMBAI E BENCH (2017) 84 TAXMAN.COM 51 (MUM) 2 ND MAY, 2017 II. SUNDARAM FINANCE LTD. (MADRAS HIGH COURT) (2018) 93 TAXMANN.COM 250 (MADRAS) 23 RD APRIL, 2018 III. ITAT ORDER HYD A SMC BENCH IN JYOTHIRMOY YAMSANI VS DCIT, CIRCLE 1, WARANGAL IN ITA 1519/HYD/2016 AY 1999 - 2000 DT 2811.2017 STATING THAT THE IMPUGNED PENALTY D ESERVES TO BE RESTORED BUT THE SAME IS NOT FOUND TO BE APPLICABLE HEREIN AS WE ARE BOUND BY THE DECISION OF HONORABLE JURISDICTIONAL H IGH C O URT ONLY. W E THUS AFFIRM CIT(A)S FINDINGS DELET ING IMPUGNED PENALTY. REVENUE FAILS IN ITS SOLE SUBSTANTIVE GRIEVANCE. THIS REVENUES APPEAL IS DISMISSED. ORDER PRONOUNCED IN OPEN COURT ON 09 /04/2021. SD/ - S D/ - (L.P. SAHU) (S.S. GODARA) ACCOUNTANT MEMBER JUDICIAL MEMBER DATED: 09 TH APRIL, 2021 *GMV COPY OF ORDER FORWARDED TO: 1. JCIT (OSD - 5), CENTRAL CIRCLE 2(1), HYDERABAD. 2. M/S SREE NAGENDRA CONSTRUCTIONS. H.NO.6 - 3 - 40/6, SRI NAGAR COLONY, ROTARY NAGAR, KHAMMAM 507 002 3. ACIT, CENTRAL RANGE 2, HYDERABAD 4. CIT(A) - 12, HYDERABAD 5. PR.CIT, CENTRAL, HYDERABAD. 6. D.R. ITAT HYDERABAD 7. GUARD FILE