Dy. Commissioner of Income Tax , Circle-17(2), Hyderabad V. Zenotech Laboratories Limited , Hyderabad

ITA 843/Hyd/2019

• Counselvise Citation: [2021] 107 COUNSELVISE.COM (IT) 8082 (ITAT-HYDERABAD)
• Duration Of Justice: 2 year(s) 3 month(s) 12 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 03-09-2021
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: DB-A
• Next Hearing Date: 02-06-2021
• Assessment Year: 2006-2007
• Appeal Filed On: 21-05-2019
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: ASHOK KARDAM
• Assessee Lawyers: K A SAI PRASAD
• Keywords: Period of limitation; Time period of passing order
• Section: 271(1)(c)

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. 843 & 844/HYD/2019 ASSESSMENT YEAR: 2006-07 & 2013-14 DY.COMMISSIONER OF INCOME TAX, CIRCLE-17(2), HYDERABAD VS M/S.ZENOTECH LABORATORIES LIMITED, HYDERABAD [PAN: AAFCS6617R] (APPELLANT) (RESPONDENT) FOR REVENUE : SHRI ASHOK KARDAM, DR FOR ASSESSEE : SHRI K.A.SAI PRASAD, AR DATE OF HEARING : 02-06-2021 DATE OF PRONOUNCEMENT : 03-09-2021 O R D E R PER S.S.GODARA, J.M. : THESE TWO REVENUES APPEALS FOR AYS.2006-07 & 2013- 14 ARISE FROM THE CIT(A)-7, HYDERABADS ORDER(S) DATED 2 6-02- 2019 PASSED IN CASE NOS.0091 & 0093 / CIT(A)-7 / 20 18-19, INVOLVING PROCEEDINGS U/S. 271(1)(C) OF THE INCOME T AX ACT, 1961 [IN SHORT, THE ACT]; RESPECTIVELY. 2. AT THE OUTSET, WE NOTICE THAT THESE REVENUES APPEALS SUFFER FROM IDENTICAL DELAY OF 08 DAYS AS ATTRIBUTABLE TO THE REASONS MENTIONED IN THE PETITION(S)/AFFIDAVIT(S) AND ON ITA NOS. 843 & 844/HYD/2019 :- 2 -: ACCOUNT OF NO OBJECTION FROM ASSESSEES SIDE. THIS DE LAY STANDS CONDONED THEREFORE. 3. WE NOW ADVERT TO THE REVENUES IDENTICAL SOLE SUBSTANTIVE GROUND CHALLENGING CORRECTNESS OF THE CIT( A)S ACTION DELETING SECTION U/S.271(1)(C) PENALTY(IES) OF RS.2,51,40,989/- & RS.2,40,11,400/- IMPOSED IN THE ASSESSING OFFICERS ORDER(S) BOTH DT.29-09-2016; RESP ECTIVELY. 4. IT TRANSPIRES DURING THE COURSE OF HEARING AT THE OUTS ET THAT THE ASSESSING OFFICERS CORRESPONDING PENALTY SHO W CAUSE NOTICE(S) DT.31-12-2008 AND 31-03-2016; RESPECTIVELY N OWHERE SPECIFIED AS TO WHETHER THE ASSESSEE HAD CONCEALED THE PARTICULARS OF INCOME OR FURNISHED INACCURATE PARTICUL ARS OF INCOME. WE QUOTE, HON'BLE JURISDICTIONAL HIGH COURT S DECISION PR.CIT VS. BAISETTY REVATHI [398 ITR 88] (TELANGANA & AP) AND MOHD.FARHAN A.SHAIKH VS. DCIT (2021) [125 TAXMANN.C OM 253] (BOM) (FB) THAT SUCH A FAILURE RENDERS THE ENTIRE PENAL MECHANISM AS INVALID. WE THEREFORE UPHOLD THE CIT(A) S ACTION DELETING THE IMPUGNED PENALTY(IES) ON THIS PRECISE L EGAL ISSUE ALONE. 5. WE LASTLY ACKNOWLEDGE THAT ALTHOUGH THE INSTANT LIS IS BEING DECIDED AFTER A PERIOD OF 90 DAYS FROM THE DATE OF HEARING AS PER RULE 34(5) OF THE IT(AT) RULES 1963, THE SAME HOWEVER, DOES NOT APPLY IN THE COVID LOCKDOWN SITUATI ON AS PER HON'BLE APEX COURTS RECENT DIRECTIONS DATED 27-04-2021 IN M.A.NO.665/2021 IN SM(W)C NO.3/2020 IN RE COGNIZANCE FOR EXTENSION OF LIMITATION MAKING IT CLEAR THAT IN SUCH CASES WHERE THE LIMITATION PERIOD (INCLUDING THAT PRESCRIBED FOR INS TITUTION ITA NOS. 843 & 844/HYD/2019 :- 3 -: AS WELL AS TERMINATION) SHALL STAND EXCLUDED FROM 14 TH OF MARCH, 2021 TILL FURTHER ORDERS IN ABOVE TERMS. 6. THESE TWO REVENUES APPEALS ARE DISMISSED IN ABO VE TERMS. A COPY OF THIS COMMON ORDER BE PLACED IN THE R ESPECTIVE CASE FILES. ORDER PRONOUNCED IN THE OPEN COURT ON 3 RD SEPTEMBER, 2021 SD/- SD/- (LAXMI PRASAD SAHU) (S.S.G ODARA) ACCOUNTANT MEMBER JUDICIAL MEM BER HYDERABAD, DATED: 03-09-2021 TNMM ITA NOS. 843 & 844/HYD/2019 :- 4 -: COPY TO : 1.DY.COMMISSIONER OF INCOME TAX, CIRCLE-17(2), HYDERABAD. 2.M/S.ZENOTECH LABORATORIES LIMITED, SY.NO.250/252, TURKAPALLY, SHAMEERPET MANDAL, RANGAREDDY DISTRICT, HYDERABAD. 3.CIT(APPEALS)-7, HYDERABAD. 4.PR.CIT-5, HYDERABAD. 5.D.R. ITAT, HYDERABAD. 6.GUARD FILE.