EXPONENTIAL TECHNOLOGIES ( SOFTWARE AND HARDWARE) PRIVATE LIMITED,HYDERABAD vs. INCOME TAX OFFICER, WARD-17(2), HYDERABAD

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ITA 1989/HYD/2017Status: DisposedITAT Hyderabad21 August 2020AY 2011-123 pages
AI SummaryRemanded

What did the Tribunal hold?

The Tribunal set aside the penalty orders to the file of the AO, directing re-initiation of penalty proceedings if necessary after the completion of the assessment proceedings.

What were the facts?

The assessee appealed against penalty orders confirmed by the CIT(A). The quantum appeals for the same assessment years had been previously remanded by the Tribunal to the AO for de novo verification.

What were the issues?

Whether penalty proceedings should be set aside and remanded to the AO when the related quantum additions are also remanded for de novo consideration.

Which sections of the Income-tax Act were involved?

Section 271(1)(c)

AI-generated summary — verify with the full judgment below

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

Before: SMT. P. MADHAVI DEVI & SHRI A. MOHAN ALANKAMONY

PER Smt. P. MADHAVI DEVI, J.M. : Both are assessee’s appeals for the AYs.2011-12 & 2012- 13 respectively, directed against the separate orders of the Commissioner of Income Tax (Appeals)-5, Hyderabad dated 22- 07-2016 for both the assessment years. The CIT(A) had confirmed the penalty levied u/s.271(1)(c) of the Income Tax Act [Act] and the assessee is in appeal against the orders of the CIT(A).

2.

Both these appeals are taken up for hearing on 20-08- 2020 through video conferencing and both the parties were heard.

:- 2 -: & 1990/Hyd/2017

3.

Ld.Counsel for the assessee submitted that the quantum appeals had come up for adjudication before the Tribunal in & 304/Hyd/2016, AYs.2011-12 & 2012-13 and this Tribunal vide order dt.20-06-2018, had remanded the issue to the file of AO for Denovo verification of the annual reports and consideration of the issue in accordance with law. A copy of the said order is filed before us. Therefore, he submitted that consequently, the penalty orders may also be set aside to the file of AO.

4.

Ld.DR had no objection to the said contention of the assessee.

5.

Having regard to the rival contentions and material on record and also particularly the fact that the assessee’s appeals against quantum additions have been set aside to the file of AO for Denovo consideration, we deem it fit and proper to set aside the penalty orders also to the file of AO and direct the AO to re-initiate the penalty proceedings, if necessary, after the completion of assessment proceedings pursuant to the order of the Tribunal, dt.20-06-2018.

6.

In the result, both the appeals of assessee are treated as allowed for statistical purposes.

1.

Order pronounced in the open court on 21st August, 2020 Sd/- Sd/- ( A. MOHAN ALANKAMONY ) ( P. MADHAVI DEVI ) ACCOUNTANT MEMBER JUDICIAL MEMBER Hyderabad, Dated: 21-08-2020 TNMM

:- 3 -: & 1990/Hyd/2017

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