SOJIRAM ISPAT PRIVATE LIMITED ,HYDERABAD vs DY. COMMISSIONER OF INCOME TAX , CIRCLE-3(2), HYDERABAD

Income Tax Appellate Tribunal, HYDERABAD BENCHES “B” : HYDERABAD

Before: SHRI S.S.GODARA & SHRI LAXMI PRASAD SAHU

O R D E R PER S.S.GODARA, J.M. : This assessee’s appeal for AY.2009-10 arises from the CIT(A)-3, Hyderabad’s order dated 23-03-2020 passed in case No.10414/ 2017-18 / A3 / CIT(A)-3 , involving proceedings u/s. 271(1)(c) r.w.s. 254 of the Income Tax Act, 1961 [in short, ‘the Act’]. 2. We now advert to assessee’s sole substantive ground against levying penalty of Rs.37,02,113/- u/s.271(1)(c).

M/s Sojiram Ispat Private Limited, Hyd.

It transpires during the course of hearing at the outset that the Assessing Officer’s corresponding penalty show cause notice dated 26122011 had nowhere specified as to whether the assessee had “concealed the particulars of income or furnished inaccurate particulars 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.com 253] (Bom) (FB) that such a failure renders the entire penal mechanism as invalid. We therefore delete the impugned penalty for this precise issue alone.

This assessee’s appeal is allowed in above terms. Pronounced in Open Court on 08th October, 2021.

SOJIRAM ISPAT PRIVATE LIMITED ,HYDERABAD vs. DY. COMMISSIONER OF INCOME TAX , CIRCLE-3(2), HYDERABAD