Jammulamadaka Anjaneya Sharma , Secunderabad V. Income Tax Officer, Ward-10(2) , Hyderabad

ITA 960/Hyd/2019

• Counselvise Citation: [2021] 108 COUNSELVISE.COM (IT) 5713 (ITAT-HYDERABAD)
• Duration Of Justice: 1 year(s) 10 month(s) 23 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 30-04-2021
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB-A
• Next Hearing Date: 24-03-2021
• Assessment Year: 2011-2012
• Appeal Filed On: 07-06-2019
• Result in Favour of: Assessee
• Court: TRIBUNAL
• 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. NO. 960/HYD/2019 ASSESSMENT YEAR: 2011-12 JAMMULAMADAKA ANJANEYA SHARMA, SECUNDERABAD [PAN: ACLPJ0746P] VS INCOME TAX OFFICER, WARD-10(2), HYDERABAD (APPELLANT) (RESPONDENT) FOR ASSESSEE : NONE FOR REVENUE : SHRI SUNIL KUMAR PANDEY, DR DATE OF HEARING : 24-03-2021 DATE OF PRONOUNCEMENT : 30-04-2021 O R D E R PER S.S.GODARA, J.M. : THIS ASSESSEES APPEAL FOR AY.2011-12 ARISES FROM TH E CIT(A)-6, HYDERABADS ORDER DATED 01-04-2019 PASSED IN CASE NO.0124/2016-17/B2/CIT(A)-6, INVOLVING PROCEEDINGS U/S. 271(1)(C) OF THE INCOME TAX ACT, 1961 [IN SHORT, THE ACT]. CASE CALLED TWICE. NONE APPEARED AT ASSESSEES BEHE ST. HE IS ACCORDINGLY PROCEEDED EX-PARTE. ITA NO. 960/HYD/2019 :- 2 -: 2. WE NOW ADVERT TO THE ASSESSEES SOLE SUBSTANTIVE GRIEVANCE CHALLENGING CORRECTNESS OF BOTH THE LOWER AU THORITIES ACTION IMPOSING SECTION 271(1)(C) PENALTY OF RS.8,40, 000/- IN ASSESSING OFFICERS ORDER DT.31-03-2016 AS UPHELD IN THE CIT(A)S ORDER. 3. LEARNED DEPARTMENTAL REPRESENTATIVE FAILS TO DISPUTE AT THE OUTSET THAT THE ASSESSING OFFICERS PENALTY HEREIN ABOVE NOWHERE SPECIFIES AS TO WHETHER THE ASSESSEE HAD CONCE ALED PARTICULARS OF HIS TAXABLE INCOME OR FURNISHED INACCU RATE PARTICULARS OF SUCH AN INCOME AS CONTEMPLATED U/S. 271 (1)(C) OF THE ACT. HON'BLE JURISDICTIONAL HIGH COURTS DECI SION PR.CIT VS. BAISETTY REVATHI [398 ITR 88] (TELANGANA & AP), - SUCH A FAILURE RENDERS PENAL ACTION AS NOT SUSTAINABLE IN LAW . COUPLED WITH THIS, WE ALSO NOTICE THAT THE IMPUGNED PENALTY PERTAINS TO QUANTUM ADDITION OF RS.28 LAKHS M ADE IN ASSESSEES HANDS AS ON 31-03-2014 ON ACCOUNT OF HIS FAILURE IN PROVING AN ALLEGED ADVANCE RECEIPT FROM ONE SHRI BA NDELA CHANDRAIAH. THE ASSESSEE HAD SOUGHT TO GET THE SAME VERIFIED BUT THE CORRESPONDING AFFIDAVIT TO THIS EFFECT HAS BEEN TR EATED AS A FABRICATED ONE. BE THAT AS IT MAY, ALL THIS SUFFIC IENTLY SUGGESTS THAT IT IS AN INSTANCE OF THE ASSESSEES SUPPOR TIVE EVIDENCE PRODUCED BUT NOT ACCEPTED AS CORRECT. HON'B LE APEX COURTS LANDMARK DECISION IN CIT VS. RELIANCE PETROPR ODUCTS P. LTD., [322 ITR 158] (SC) HOLDS THAT QUANTUM AND PENALTY ARE PARALLEL PROCEEDINGS WHEREIN EACH AND EVERY DISALLOWANCE/ADDITION MADE IN THE CASE OF THE FORME R DOES NOT IPSO FACTO ATTRACT THE LATTER PENAL PROVISION . WE GO BY THE VERY ITA NO. 960/HYD/2019 :- 3 -: REASONING AND DIRECT THE ASSESSING OFFICER TO DELETE THE IMPUGNED PENALTY. 4. THIS ASSESSEES APPEAL IS ALLOWED IN ABOVE TERMS. ORDER PRONOUNCED IN THE OPEN COURT ON 30 TH APRIL, 2021 SD/- SD/- (LAXMI PRASAD SAHU) (S.S.G ODARA) ACCOUNTANT MEMBER JUDICIAL MEM BER HYDERABAD, DATED: 30-04-2021 TNMM ITA NO. 960/HYD/2019 :- 4 -: COPY TO : 1.SHRI JAMMULAMADAKA ANJANEYA SHARMA, PLOT NO.16, SREENILAYAM, GUN ROCK ENCLAVE, MUDFORT, SECUNDERABA D. 2.THE INCOME TAX OFFICER, WARD-10(2), HYDERABAD. 3.CIT(APPEALS)-6, HYDERABAD. 4.PR.CIT-6, HYDERABAD. 5.D.R. ITAT, HYDERABAD. 6.GUARD FILE.