ITO, Hyderabad V. M/s Ahmed Sherief & Bros., Hyderabad

ITA 574/HYD/2010

• Counselvise Citation: [2010] 136 COUNSELVISE.COM (IT) 3020 (ITAT-HYDERABAD)
• Duration Of Justice: 2 month(s) 26 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 16-07-2010
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: A
• Assessment Year: 2007-2008
• Appeal Filed On: 20-04-2010
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: R B NAIK
• Assessee Lawyers: C P RAMASWAMI

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD BENCHES A : HYDERABAD BEFORE SHRI N.R.S. GANESAN, JUDICIAL MEMBER AND SHRI CHANDRA POOJARI, ACCOUNTANT MEMBER ITA. NO. 574/HYD/2010 ASSESSMENT YEAR 2007-2008 ITO, WARD 9 (2) HYDERABAD. VS. M/S. AHMED SHERIEF & BROS. HYDERABAD 500 002. PAN AAJFA-7599-T (APPELLANT) (RESPONDENT) FOR APPELLANT : SHRI R.B. NAIK (DR) FOR RESPONDENT : SHRI C.P.RAMASWAMI ORDER PER N.R.S GANESAN, J.M. 1. THIS APPEAL OF THE REVENUE IS DIRECTED AGAINST THE ORDER OF THE CIT (A)-VI, HYDERABAD DATED 18-1-2010, DELETIN G THE PENALTY LEVIED UNDER SECTION 271 (1) (C) OF THE I.T. ACT, FOR THE ASSESSMENT YEAR 2007- 2008. 2. SHRI R.B NAIK, LEARNED REPRESENTATIVE FOR THE R EVENUE SUBMITTED THAT THERE WAS A SURVEY OPERATION IN THE PREMISES OF THE ASSESSEE ON 29-6-2006. DURING THE COURSE OF SURVEY OPERATION THE ASSESSEE OFFERED ADDITIONAL INCOME. REFERRING TO TH E PENALTY ORDER LEARNED REPRESENTATIVE SUBMITTED THAT DURING THE ASSESSMENT YEAR 2004-2005 THE ASSESSEE ADMITTED INCOME OF RS.55,720/- AND FOR THE ASSESSMENT YEAR 2005-2006 THE ASSESSEE ADMITTED INCOME OF RS.1,04,8 30/-. ON A QUERY FROM THE BENCH WHETHER THERE WAS ANY CONCEALMENT FO R THE ASSESSMENT YEAR UNDER CONSIDERATION I.E., 2007-2008, THE LEARN ED REPRESENTATIVE POINTED OUT THAT THE REVENUE AUTHORITIES FOUND SUPP RESSION OF PROFIT DURING THE COURSE OF SURVEY OPERATION FOR THE ASSES SMENT YEAR 2007- 2 2008. HOWEVER, THE ASSESSEE FILED THE REGULAR RETUR N OF INCOME. ACCORDING TO THE LEARNED REPRESENTATIVE SINCE THE R EVENUE AUTHORITIES FOUND SUPPRESSION OF INCOME DURING THE COURSE OF SU RVEY OPERATION FOR THE ASSESSMENT YEAR 2007-2008 THERE WAS A CONCEALME NT OF INCOME THEREFORE, THE PENALTY WAS RIGHTLY LEVIED BY THE AS SESSING OFFICER. 3. ON THE CONTRARY, SHRI C.P. RAMASWAMI, LEARNED C OUNSEL FOR THE ASSESSEE SUBMITTED THAT ADMITTEDLY THERE WAS A SURVEY IN THE PREMISES OF THE ASSESSEE ON 29-6-2006. DURING THE A SSESSMENT YEAR 2007-2008 THE ASSESSEE FILED RETURN OF INCOME IN TH E REGULAR COURSE DECLARING INCOME OF RS.34,10,050/-. THE ASSESSING O FFICER BY ORDER UNDER SECTION 143 (3) ACCEPTED THE INCOME DECLARED BY THE ASSESSEE AND ASSESSED THE TOTAL INCOME OF RS. 34,10,050/-. THERE FORE, ACCORDING TO THE LEARNED REPRESENTATIVE, THERE IS NO QUESTION OF ANY CONCEALMENT OF INCOME OR FURNISHING OF ANY INACCURATE PARTICULARS. IN THE ABSENCE OF ANY MATERIAL TO SHOW THAT THE ASSESSEE HAS FURNISHED AN Y INACCURATE PARTICULARS OR CONCEALED ANY PART OF THE INCOME, LE VY OF PENALTY IS NOT JUSTIFIED AND CIT (A) HAS RIGHTLY DELETED THE PENAL TY. 4. WE HAVE CONSIDERED THE RIVAL SUBMISSIONS ON EIT HER SIDE AND PERUSED THE MATERIALS AVAILABLE ON RECORD. IT IS NO T IN DISPUTE THAT THE ASSESSEE HAS FILED RETURN OF INCOME FOR THE ASSESSM ENT YEAR 2007-2008 IN REGULAR COURSE, DECLARING TOTAL INCOME OF RS.34, 10,050/-. THIS RETURN OF INCOME WAS ACCEPTED BY THE ASSESSING OFFICER AND THE TOTAL INCOME WAS ASSESSED AT RS.34,10,050/-. SECTION 271 (1) (C) ENABLES THE ASSESSING OFFICER TO LEVY PENALTY IN CASE THE ASSES SEE CONCEALED THE PARTICULARS OF HIS INCOME OR FURNISHED INACCURATE P ARTICULARS OF SUCH INCOME. IN THIS CASE THE TOTAL INCOME FURNISHED TO THE DEPARTMENT BY THE ASSESSEE IS RS.34,10,050/- AND THE SAID INCOME WAS ACCEPTED BY THE ASSESSING OFFICER AND ASSESSED INCOME ALSO AT RS.34 ,10,050/-. THEREFORE, AS RIGHTLY SUBMITTED BY THE LEARNED COUNSEL FOR THE ASSESSEE, THERE IS NO 3 QUESTION OF ANY CONCEALED PARTICULARS OF INCOME OR FURNISHING INACCURATE PARTICULARS. THEREFORE, IN OUR OPINION, THE CIT (A) HAS RIGHTLY DELETED THE PENALTY. WE DO NOT FIND ANY INFIRMITY IN THE ORDER CIT (A). ACCORDINGLY, THE SAME IS CONFIRMED. 5. IN THE RESULT, THE APPEAL FILED BY THE REVENUE STANDS DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT, ON THIS THE 16 TH DAY OF JULY, 2010. SD/- SD/- (CHANDRA POOJARI) (NRS. GANESAN) ACCOUNTANT MEMBER JUDICIAL MEMBER HYDERABAD, DATE 16 TH JULY, 2010 VBP/- COPY TO 1. ITO, WARD 9 (2), HYDERABAD 4. 2. M/S. AHMED SHERIEF & BROS. 22-8-321, DARUSHIFA, HYDERABAD 500 002. PAN AAJFA-7599-T 3. CIT (A)-VI, HYDERABAD. 4. CIT-VI, HYDERABAD 5. DR A BENCH, HYDERABAD 6. GUARD FILE