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Income Tax Appellate Tribunal, Hyderabad ‘ B ‘ Bench, Hyderabad
Before: Shri S.S. Godara & Shri Inturi Rama Rao
This assessee’s appeal for AY. 2015-16 arises from the CIT(A)-3, Hyderabad’s order dated 07.06.2019 passed in case No.10325/DCIT-3(2)/Hyd/CIT(A)-3/2018-19 involving proceedings u/s. 271(1)(b) of the Income Tax Act, 1961 [in short, ‘the Act’].
Heard both parties. Case file(s) perused.
Coming to the assessee’s sole substantive grievance that both the lower authorities have erred in law and on facts in imposing sec 271(1)(b) penalty of Rs.10,000/- alleging non- cooperation during scrutiny, we note at the outset that with the 1
able assistance coming from the taxpayer as well as the Revenue side that the Assessing Officer had in fact framed sec 143(3) assessment only on 13.12.2017 making sec 36(1)(iii) interest, ESIPF and sec 14A r.w.r 8D disallowance (es) of Rs.2,25,96,530/-, Rs.60,15,206/- and Rs.72,54,845/-. Coupled with this, he had further added an amount of Rs.72,54,845/- as MAT adjustment u/s 115JB of the Act.
Faced with this situation, learned departmental representative fails to rebut the clinching fact that the assessee appears to have filed all the relevant details during the scrutiny itself on the basis of which the AO had disallowed / added the foregoing sums as per the case file. We conclude in these facts and circumstances that both he learned lower authorities have erred in imposing the penalty alleging non-cooperation during scrutiny u/s 271(1)(b) of the Act. The same is directed to be deleted therefore.
This assessee’s appeal is allowed.