Sanghi Industries Ltd, Hyd, Hyderabad V. ACIT, Circle-3(1), Hyderabad, Hyderabad

ITA 834/HYD/2016

• Counselvise Citation: [2019] 115 COUNSELVISE.COM (IT) 9764 (ITAT-HYDERABAD)
• Duration Of Justice: 3 year(s) 3 month(s) 29 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 01-10-2019
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: DB-B
• Next Hearing Date: 23-09-2019
• Assessment Year: 2010-2011
• Appeal Filed On: 02-06-2016
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Assessee Lawyers: K A SAI PRASAD
• Keywords: TDS
• Section: 115JB

Judgement Text

ITA NOS 122 AND 834 AND CO 31 OF 2016 SANGLI INDUST RIES LTD RR DISTT. PAGE 1 OF 8 IN THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD B BENCH, HYDERABAD BEFORE SMT. P. MADHAVI DEVI, JUDICIAL MEMBER AND SHRI A. MOHAN ALANKAMONY, ACCOUNTANT MEMBER ITA NOS.122/HYD/2016 ASSESSMENT YEAR: 2010-11 DY. COMMISSIONER OF INCOME TAX, CIRCLE 3(1) HYDERABAD VS. M/S. SANGHI INDUSTRIES LTD, RR DISTT PAN: AAECS5510Q (APPELLANT) (RESPONDENT) ITA NO.834/HYD/2016 AND C.O.NO.31/HYD/2016 (ARISING OUT OF ITA NO.122/HYD/2016) AY 2010-11 M/S. SANGHI INDUSTRIES LTD, RR DISTT PAN: AAECS5510Q VS. DY. COMMISSIONER OF INCOME TAX, CIRCLE 3(1) HYDERABAD REVENUE BY: SRI SOLGY JOSE T. KOTTARAM, DR ASSESSEE BY: SRI K.A. SAI PRASAD DATE OF HEARING: 23/09/2019 DATE OF PRONOUNCEMENT: 01/10/2019 ORDER PER SMT. P. MADHAVI DEVI, J.M. BOTH THE APPEALS AS WELL AS THE CROSS OBJECTIONS AR E FILED AGAINST THE ORDER OF THE CIT (A)-GUNTUR, DATE D, 24/10/2013. 2. BRIEF FACTS OF THE CASE ARE THAT THE ASSESSEE CO MPANY FILED ITS RETURN OF INCOME FOR THE A.Y 2010-11 ON 2 3.09.2010 DECLARING TOTAL LOSS OF RS.2,22,41,970/- UNDER THE NORMAL PROVISIONS AND RS.19,27,91,633/- U/S 115JB OF THE A CT. THE TAX LIABILITY AS PER THE ASSESSEES OWN COMPUTATION WAS RS.2,74,18,745/- AND AFTER CLAIMING CREDIT OF TDS O F ITA NOS 122 AND 834 AND CO 31 OF 2016 SANGLI INDUST RIES LTD RR DISTT. PAGE 2 OF 8 RS.18,14,935/-, THE ASSESSEE DETERMINED ITS NET AGG REGATE LIABILITY AT RS.2,56,03,810/-. 3. THE ASSESSEE FILED ITS RETURN OF INCOME WITHOUT MAKING PAYMENT OF SELF-ASSESSMENT TAX. THEREFORE, THE AO I NITIATED THE PROCEEDINGS U/S 221(1) OF THE ACT, BY ISSUING A NOT ICE DATED 21.01.2011, TO SHOW CAUSE AS TO WHY THE PENALTY U/S 221(1) SHOULD NOT BE IMPOSED FOR FAILURE TO PAY TAXES. THE ASSESSEE COMPANY, VIDE LETTER DATED 1.2.2011, SUBMITTED THAT THE INDUSTRY IS IN FINANCIAL CRUNCH AND REQUESTED TIME TO PAY TH E TAXES BY 14.03.2011. THE AO HOWEVER, HELD THAT THE TAX LIABI LITY, IN QUESTION, WAS ADMITTED BY THE ASSESSEE ON ITS OWN A ND IT IS NOT THE RESULT OF AN ASSESSMENT NOR IS IT DISPUTED. SIN CE THE ASSESSEE DID NOT MAKE PAYMENT OF ADVANCE TAX IN ANY OF THE F OUR QUARTERS AND FILED THE RETURN OF INCOME WITHOUT MAKING PAYME NT OF SELF- ASSESSMENT TAX, HE HELD THAT THE PROVISIONS OF SECT ION 221(1) OF THE ACT ARE ATTRACTED. HE, THEREFORE, LEVIED PENALT Y EQUIVALENT TO 25% OF THE AGGREGATE TAX LIABILITY WHICH IS RS.64,0 0,953/- AND RAISED THE DEMAND ACCORDINGLY. 4. AGGRIEVED, ASSESSEE PREFERRED AN APPEAL BEFORE T HE CIT (A), WHO GRANTED PARTIAL RELIEF TO THE EXTENT OF RS .54,00,953/- AND RESTRICTED THE PENALTY TO RS.10.00 LAKHS. AGAINST T HE RELIEF GRANTED BY THE CIT (A), THE REVENUE IS IN APPEAL BEFORE US AND AGAINST THE CONFIRMATION OF THE PENALTY TO THE EXTENT OF RS.10. 00 LAKHS, THE ASSESSEE HAS ALSO FILED THE CROSS OBJECTION BEFORE US. THEREAFTER, THE ASSESSEE HAS FILED THE CROSS APPEAL IN ITA NO.8 34/HYD/2016. BOTH THE C.O AND CROSS APPEAL ARE FILED WITH DELAY OF 792 AND 892 DAYS RESPECTIVELY.