Neelimala Estates Private Limited, Hyderabad V. Income Tax Officer, Ward-16(2), Hyderabad

ITA 676/Hyd/2018

• Counselvise Citation: [2021] 108 COUNSELVISE.COM (IT) 0528 (ITAT-HYDERABAD)
• Duration Of Justice: 3 year(s) 3 month(s) 7 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 19-07-2021
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB-A
• Next Hearing Date: 17-12-2020
• Assessment Year: 2004-2005
• Appeal Filed On: 11-04-2018
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Section: 271(1)(c); 2

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD BENCHES A : HYDERABAD (THROUGH VIDEO CONFERENCE) BEFORE SHRI S.S.GODARA, JUDICIAL MEMBER AND SHRI LAXMI PRASAD SAHU, ACCOUNTANT MEMBER I.T.A. NOS. 676 & 677/HYD/2018 ASSESSMENT YEARS: 2004-05 & 2005-06 NEELIMALA ESTATES PVT. LTD., HYDERABAD [PAN: AABCN5962A] VS INCOME TAX OFFICER, WARD-16(2), HYDERABAD (APPELLANT) (RESPONDENT) FOR ASSESSEE : NONE FOR REVENUE : SHRI SUNKU SRINIVASU, DR DATE OF HEARING : 19-05-2021 DATE OF PRONOUNCEMENT : 19-07-2021 O R D E R PER S.S.GODARA, J.M. : THESE TWO ASSESSEES APPEALS FOR AYS.2004-05 & 2005 -06 ARISES FROM THE CIT(A)-4, HYDERABADS ORDER DATED 18- 01-2018 PASSED IN CASE NOS.0179 & 0180/ 2016-17 / ITO, WD.1 6(2) / CIT(A)-4 / HYD / 17-18, INVOLVING PROCEEDINGS U/S.2 71(1)(C) OF THE INCOME TAX ACT, 1961 [IN SHORT, THE ACT]. CASES CALLED TWICE. NONE APPEARED FOR THE ASSESSEES BEHEST. IT IS ACCORDINGLY PROCEEDED EX-PARTE . 2. WE NOW ADVERT TO THE ASSESSEES SOLE SUBSTANTIVE GRIEVANCE IN BOTH THE ASSESSMENT YEARS, CHALLENGING CORRECTNESS OF BOTH THE LOWER AUTHORITIES ACTION IMPOSIN G ITA NOS. 676 & 677/HYD/2018 :- 2 -: SECTION 271(1)(C) PENALTY OF RS.2,81,391 (FOR AY.20 04-05) & RS.1,17,519/- (FOR AY.2005-06) IN ASSESSING OFFICER S PENALTY ORDER(S) DT.26-03-2013 AS UPHELD IN THE CIT(A)S LOWE R APPELLATE ORDER. 3. LEARNED DEPARTMENTAL REPRESENTATIVE FAILS TO DISPUTE AT THE OUTSET THAT THE ASSESSING OFFICERS PENALTY SHOW CAUS E NOTICE NOWHERE SPECIFIED AS TO WHETHER THE ASSESSEE HA D CONCEALED PARTICULARS OF HIS TAXABLE INCOME OR FURNIS HED INACCURATE PARTICULARS OF SUCH AN INCOME AS CONTEMPLA TED U/S. 271(1)(C) OF THE ACT. HON'BLE JURISDICTIONAL HIGH COU RTS DECISION PR.CIT VS. BAISETTY REVATHI [398 ITR 88] (TELANGANA & AP) HOLDS THAT SUCH A FAILURE RENDERS PENAL ACTION AS NOT SUSTAINABLE IN LAW . THE VERY LEGAL PREPOSITION ALSO STANDS REITERATED IN MOHD.FARHAN A.SHAIKH VS. DCIT (2021) [125 TAXMANN.C OM 253] (BOM) (FB) AS WELL. WE THEREFORE DELETE THE IMPUG NED PENALTY ON THIS PRECISE LEGAL ISSUE. 4. THESE TWO ASSESSEES APPEALS ARE ALLOWED IN ABOV E TERMS. A COPY OF THIS COMMON ORDER BE PLACED IN THE RESPECTI VE CASE FILES. ORDER PRONOUNCED IN THE OPEN COURT ON 19 TH JULY, 2021 SD/- SD /- (LAXMI PRASAD SAHU) (S.S.G ODARA) ACCOUNTANT MEMBER JUDICIAL MEM BER HYDERABAD, DATED: 19-07-2021 TNMM ITA NOS. 676 & 677/HYD/2018 :- 3 -: COPY TO : 1.NEELIMALA ESTATES PVT.LTD., FLAT NO.203, RAJ RESI DENCY, ROAD NO.41, NAVODAYA COLONY, BANJARA HILLS, HYDERAB AD. 2.THE INCOME TAX OFFICER, WARD-16(2), HYDERABAD. 3.CIT(APPEALS)-4, HYDERABAD. 4.PR.CIT-4, HYDERABAD. 5.D.R. ITAT, HYDERABAD. 6.GUARD FILE.