FLORENCE ESTATES AND CONSTRUCTIONS LIMITED ,HYDERABAD vs INCOME TAX OFFICER, WARD-15(2), HYDERABAD

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

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

PER S.S.GODARA, J.M. : This assessee’s appeal for AY.2005-06 arises from the CIT(A)-5, Hyderabad’s order dated 12-03-2018 passed in case No.0296 / 2016-17 / CIT(A)-5, involving proceedings u/s. 271(1)(c) of the Income Tax Act, 1961 [in short, ‘the Act’]. Case called twice. None appeared for the assessee’s behest. It is accordingly proceeded ex-parte.

We now advert to the assessee’s sole substantive grievance challenging correctness of Section 271(1)(c) penalty of Rs.5,00,000/- imposed in Assessing Officer’s order as upheld in the CIT(A)’s lower appellate order, learned departmental representative fails to dispute at the outset that the Assessing Officer’s corresponding Section 271(1)(c) penalty show cause notice dt.31-12-2007 had nowhere specified as to whether the assessee had concealed particulars of his taxable income or furnished inaccurate particulars of such an income as contemplated u/s. 271(1)(c) of the Act. Hon'ble jurisdictional high court’s decision Pr.CIT Vs. Baisetty Revathi [398 ITR 88] (Telangana & AP) holds that - such a failure renders penal action as not sustainable in law. The very legal preposition also stands reiterated in Mohd.Farhan A.Shaikh Vs. DCIT (2021) [125 taxmann.com 253] (Bom) (FB) as well. We therefore delete the impugned penalty on this precise legal issue alone.

This assessee’s appeal is allowed in above terms.

Order pronounced in the open court on 7th October, 2021

FLORENCE ESTATES AND CONSTRUCTIONS LIMITED ,HYDERABAD vs. INCOME TAX OFFICER, WARD-15(2), HYDERABAD