VASAVI AND GP INFRA,HYDERABAD vs. ACIT, CENTRAL CIRCLE-3(2), HYDERABAD

ITA 1045/HYD/2026Status: DisposedITAT Hyderabad24 June 2026AY 2020-2176 pages
AI SummaryAllowed

What were the facts?

During a search operation, incriminating materials including tally data were seized, indicating alleged cash receipts from customers in violation of Section 269ST. The assessee admitted additional income to cover discrepancies.

What did the Tribunal hold?

The Tribunal held that the Assessing Officer (AO) did not conclusively prove the violation of Section 269ST to levy penalty under Section 271DA. The penalty was considered unsustainable due to selective reliance on incomplete books and an astronomically high levy compared to estimated income.

What were the issues?

Whether penalty under Section 271DA is leviable when the AO has not conclusively proved violations of Section 269ST and whether the penalty is reasonable in light of admitted income and tax paid.

Which sections of the Income-tax Act were involved?

Section 271DA,Section 269ST,Section 132,Section 115BFA(2)

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, Hyderabad “B” Bench, Hyderabad

For Appellant: Dr. Narendra Kumar Naik, CIT-DR and Dr. Sachin Kumar, Sr. A.R

PER BENCH : The captioned appeals filed by the assessee firm i.e. “Vasavi and GP Infra” are directed against the separate, but identical orders of the learned Commissioner of Income Tax (Appeals), Hyderabad – 11,

The order continues below.

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