Sojiram Ispat Private Limited , Hyderabad V. Dy. Commissioner of Income Tax , Circle-3(2), Hyderabad

ITA 327/Hyd/2020

• Counselvise Citation: [2021] 107 COUNSELVISE.COM (IT) 3657 (ITAT-HYDERABAD)
• Duration Of Justice: 1 year(s) 3 month(s) 9 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 08-10-2021
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB-B
• Next Hearing Date: 16-09-2021
• Assessment Year: 2009-2010
• Appeal Filed On: 29-06-2020
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Section: 271(1)(c)

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. 327 /HYD/20 20 ASSESSMENT YEAR: 20 09 - 10 SOJIRAM ISPAT PVT. LTD. HYDERABAD [PAN: AA J C S 37 89A] VS DY.CIT, CIRCLE 3(2) HYDERABAD (APPELLANT) (RESPONDENT) FOR ASSESSEE : SHRI MOHD. AFZAL FOR REVENUE : S HRI SWAROOP MANNAVA, D R DATE OF HEARING : 1 6 - 0 9 - 2021 DATE OF PRONOUNCEMENT : 08 - 10 - 2 021 O R D E R PER S.S.GODARA, J.M. : THIS ASSESSEES APPEAL FOR AY.20 09 - 10 ARISES FROM THE CIT(A) - 3 , HYDERABADS ORDER DATED 2 3 - 03 - 2020 PASSED IN CASE NO. 10414/ 2017 - 18 / A3 / CIT(A) - 3 , INVOLVING PROCEEDINGS U/S. 271(1)(C) R.W.S. 254 OF THE INCOME TAX ACT, 1961 [IN SHORT, THE ACT]. 2. WE NOW ADVERT TO ASSESSEES SOLE SUBSTANTIVE GROUND AGAINST LEVYING PENALTY OF RS. 37,02,113/ - U/S.271(1)(C) . ITA NO. 327/HYD/2020 AY: 2009 - 10 M/S SOJIRAM ISPAT PRIVATE LIMITED, HYD. - 2 - 3. IT TRANSPIRES DURING THE COURSE OF HEARING AT THE OUTSET THAT THE ASSESSING OFFICERS CORRESPONDING PENALTY SHOW CAUSE NOTICE DATED 26122011 HAD NOWHERE SPECIFIED AS TO WHETHER THE ASSESSEE HAD CONCEALED THE PARTICULARS OF INCOME OR FURNISHED INACCURATE PARTICULARS OF INCOME. WE QUOTE, H ON'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 DELETE THE IMPUGNED PENALTY FOR THIS PRECISE ISSUE ALONE. 4. THIS ASSESSEES APPEAL IS ALLOWED IN ABOVE TERMS. PRONOUNCED IN OPEN COURT ON 08 TH OCTOBER, 2021. SD/ - SD/ - (L.P. SAHU) (S.S. G ODARA) ACCOUNTANT MEMBER JUDICIAL MEMBER DATED: THE 08 TH OCTOBER, 2021. * GMV ITA NO. 327/HYD/2020 AY: 2009 - 10 M/S SOJIRAM ISPAT PRIVATE LIMITED, HYD. - 3 - COPY OF THE ORDER FORWARDED TO: 1. M/S SOJIRAM ISPAT PRIVATE LTD.., C/O MOHD AFZAL, ADVOCATE, 402, SHERSONS RESIDENCY, 11 - 5 - 465, CRIMINAL COURT ROAD, RED HILLS, HYDERABAD 500 004 2. DY.CIT, CIRCLE 3 ( 2 ), HYDERABAD 3. ACIT, RANGE 3, HYDERABAD 4. CIT(A) - 3 , HYDERABAD 5. PR.CIT - 3 , HYDERABAD 6 . DR, ITAT, HYDERABAD. 7 . GUARD FILE.