RITHWIK PROJECTS PRIVATE LIMITED,HYDERABAD vs. ASST. COMMISSIONER OF INCOME TAX, TDS CIRCLE-2(1), HYDERABAD

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ITA 1331/HYD/2018Status: DisposedITAT Hyderabad11 January 2021AY 2011-123 pages
AI SummaryRemanded

What did the Tribunal hold?

The Tribunal restored the issue of penalties back to the Assessing Officer for fresh factual verification. This was done because the assessee claimed the demands were no longer valid after reconciliation.

What were the facts?

The assessee appealed against penalties imposed under Section 221(1) for multiple assessment years. The penalties were based on TRACES processing, and the assessee claimed the demands no longer survived due to reconciliation.

What were the issues?

Whether the penalties imposed under Section 221(1) are sustainable when the underlying demands are disputed by the assessee based on reconciliation.

Which sections of the Income-tax Act were involved?

Section 221(1)

AI-generated summary — verify with the full judgment below

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

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

BEFORE SHRI S.S.GODARA, JUDICIAL MEMBER AND SHRI LAXMI PRASAD SAHU, ACCOUNTANT MEMBER Appellant Respondent ITA No. A.Y. 1330/Hyd/18 2008-09 Rithwik Projects Asst.Commissioner 1331/Hyd/18 2011-12 Private Limited, of Income Tax, 1332/Hyd/18 2013-14 Hyderabad TDS Circle-2(1), 1333/Hyd/18 2014-15 [PAN: AABCR5748L] Hyderabad 1334/Hyd/18 2015-16 1335/Hyd/18 2016-17 For Assessee : Shri P.Murali Mohana Rao, AR For Revenue : Shri Rohit Mujumdar, DR Date of Hearing : 05-01-2021 Date of Pronouncement : 11-01-2021 O R D E R PER BENCH :

These six assessee’s appeals for AYs.2008-09, 2011-12, 2013-14, 2014-15, 2015-16 & 2016-17 are directed against the CIT(A)–8, Hyderabad’s orders all dated 16-03-2018 passed in case Nos.10209/CIT(A)-8/Hyd/2017-18, 10210/CIT(A)- 8/Hyd/2017-18,10211/CIT(A)-8/Hyd/2017-18, 10164/CIT(A)- 8/Hyd/2017-18,10389/CIT(A)-8/Hyd/2017-8&10205/CIT(A)- 8/Hyd/2017-18 involving proceedings u/s.221(1) of the Income Tax Act, 1961 [in short, ‘the Act’] Heard both the parties. Case files perused.

2.

The assessee’s sole substantive grievance raised in all these six appeals seeks to reverse both the lower authorities’ action imposing u/s.221(1) penalty (i.e.,) Rs.8501/-,

:- 2 -: Rithwik Projects Private Limited (Group)

Rs.1,13,277/-, Rs.12,88,947/-, Rs.10,06,998/-, Rs.7,39,032/- and Rs.4,06,599/-; assessment year wise, respectively.

3.

Learned counsel’s sole argument during the course of hearing is that the impugned penalties are based on ‘TRACES’ processing and the corresponding demands no longer survive as per assessee’s reconciliation filed on record dt.31-12-2020. The Revenue’s case on the other hand is that the instant issue to this effect requires Assessing Officer’s factual verification. We deem it appropriate in these peculiar facts to restore the assessee’s identical sole substantive grievance back to the Assessing Officer for his afresh factual verification as per law within three effective opportunities of hearing.

4.

These assessee’s appeals are treated as allowed for statistical purposes in above terms.

Order pronounced in the open court on 11th January, 2021

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