G. Ramakrishna, Hyd, Hyderabad V. ITO, Ward-10(1), Hyd, Hyderabad

ITA 886/HYD/2016

• Counselvise Citation: [2016] 131 COUNSELVISE.COM (IT) 5986 (ITAT-HYDERABAD)
• Duration Of Justice: 6 month(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 15-12-2016
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Next Hearing Date: 23-11-2016
• Assessment Year: 2008-2009
• Appeal Filed On: 14-06-2016
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: A SITARAMA RAO
• Assessee Lawyers: A V RAGHURAM

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD BENCHES A : HYDERABAD BEFORE SHRI D. MANMOHAN, VICE PRESIDENT AND SHRI S. RIFAUR RAHMAN, ACCOUNTANT MEMBER ITA.NO.886/HYD/2016 ASSESSMENT YEAR 2008-2009 SRI G. RAMAKRISHNA HYDERABAD. PAN AITPG2007J VS. THE ITO, WARD-10(1), HYDERABAD. (APPELLANT) (RESPONDENT) FOR ASSESSEE : SHRI A.V. RAGHURAM FOR REVENUE : SHRI A. SITARAMA RAO DATE OF HEARING : 15.12.2016 DATE OF PRONOUNCEMENT : 15.12.2016 ORDER PER D. MANMOHAN, V.P. THIS APPEAL BY THE ASSESSEE IS DIRECTED AGAINST THE O RDER PASSED BY THE CIT(A)-9, HYDERABAD AND IT PERTAINS TO T HE A.Y. 2008- 09. PENALTY LEVIED BY THE A.O. UNDER SECTION 271(1)(C ) OF THE ACT WAS CHALLENGED BEFORE US CONTENDING, INTER ALIA , THAT THE NOTICE ISSUED UNDER SECTION 271(1)(C) OF THE ACT WAS ONLY WITH REGAR D TO CASH DEPOSITS TOTALLING TO RS.19,82,150 IN THE BANK ACCOUNTS WHICH CA NNOT BE TRACED TO ANY UNACCOUNTED SOURCE OF INCOME. IT MAY BE NOTICED THAT THE A.O. MADE THE FOLLOWING ADDITIONS TO THE RETURNED INCOME. (A) CASH DEPOSITS OF RS.19,82,150 (B) PROFIT ESTIMATED RS.25,610 (C) SUNDRY CREDITORS RS.26,230 (D) OUTSTANDING EXPENSES RS.16,920. 2 ITA.NO.886/HYD/2016 SRI G. RAMAKRISHNA, HYDERABAD. 2. CONSEQUENT THERETO, THE A.O. INITIATED PROCEEDINGS U NDER SECTION 271(1)(C) OF THE ACT WHEREIN HE OBSERVED THAT NO N-DISCLOSURE OF CASH DEPOSITS AMOUNTS TO CONCEALMENT OF INCOME AND ACC ORDINGLY LEVIED MINIMUM PENALTY OF RS.9,56,506. IT DESERVES TO BE NOTICED THAT THE PENALTY ORDER DOES NOT SPEAK OF LEVY OF PENALTY W ITH REGARD TO OTHER THREE ADDITIONS. 3. ON AN APPEAL FILED BY THE ASSESSEE THE LD. CIT(A) OBSERVED THAT THE PENALTY ON THE SUNDRY CREDITORS OF RS.26,230 AN D OUTSTANDING EXPENSES OF RS.16,920 IS NOT LEVIABLE BASED ON THE RE PORT FURNISHED BY THE A.O. AND THUS HE UPHELD THE PENALTY ALLEGED TO HAVE BEEN LEVIED ON AN ADDITION OF RS.25,610 IN ADDITION TO THE ADDITION OF RS.19,82,150. THUS THE ASSESSEE IS IN APPEAL BEFORE US. 4. AT THE TIME OF HEARING, LEARNED COUNSEL FOR THE ASS ESSEE, PLACED BEFORE US A COPY OF THE ORDER OF THE ITAT, SMC BENCH (ITA.NO.643/H/2016 DATED 23.11.2016) TO SUBMIT THAT IN THE QUANTUM PROCEEDINGS THE ADDITIONS REFERRING TO LEVY OF PENALTY WERE SET ASIDE BY THE TRIBUNAL. IT WAS THEREFORE SUBMITTED THA T THE VERY BASIS FOR LEVY OF PENALTY NO LONGER EXISTS AND HENCE NO CASE WAS MADE OUT BY THE TAX AUTHORITIES TO LEVY PENALTY ON THE ALLEGED CONCEALMENT OF CASH DEPOSITS. 5. WE HAVE ALSO HEARD THE LD. D.R. AND CAREFULLY PE RUSED THE RECORD. 6. SINCE THE ADDITIONS MADE BY THE A.O, WHICH WAS THE BASIS FOR LEVY OF PENALTY, WERE SET ASIDE BY THE ITAT WE HE REBY CANCEL THE PENALTY LEVIED BY THE A.O. 7. IN THE RESULT, APPEAL FILED BY THE ASSESSEE IS ALL OWED. 3 ITA.NO.886/HYD/2016 SRI G. RAMAKRISHNA, HYDERABAD. ORDER PRONOUNCED IN THE OPEN COURT ON 15.12.2 016. SD/- SD/- (S. RIFAUR RAHMAN) (D.MANMOHAN) ACCOUNTANT MEMBER VICE PRESIDENT HYDERABAD, DATED 15 TH DECEMBER, 2016. VBP/- COPY TO 1. SRI G.RAMAKRISHNA, HYDERABAD. C/O. SRI K. VASANTKUMAR, SRI A.V. RAGHURAM, SRI P. VINOD, ADVOCATES, 610, BABUKHAN ESTATE, BASHEERBAGH, HYDERABA D PIN - 500 001. 2. THE INCOME TAX OFFICER, WARD-10(1), HYDERABAD. 3. CIT(A)-9, 2 ND FLOOR ANNEXE, AAYAKAR BHAVAN, BASHEERBAGH, HYDERABAD 500 004. 4. PR. CIT-6, HYDERABAD. 5. D.R. ITAT A BENCH, HYDERABAD. 6. GUARD FILE