A.LINGA REDDY, SHANKARPALLY, R.R.DIST,HYDERABAD vs. ITO, WARD-1, VIKARABAD, VIKARABAD
In favour of the assessee: the assessee's appeal was allowed. From the AI summary of this appeal.
What did the Tribunal hold?
The Tribunal held that the penalty notices were bad in law as they failed to specify the limb of Section 271(1)(c) under which proceedings were initiated. This decision was based on High Court and Supreme Court judgments.
What were the facts?
The assessee appealed against penalty orders confirmed by the CIT(A). The core issue was that the Assessing Officer's notice for penalty under Section 271(1)(c) did not specify whether it was for concealment of income or furnishing inaccurate particulars.
What were the issues?
Whether penalty proceedings initiated under Section 271(1)(c) are valid if the notice does not specify whether the penalty is for concealment of income or furnishing inaccurate particulars.
Which sections of the Income-tax Act were involved?
AI-generated summary — verify with the full judgment below
Cases cited in this judgment(1)Show listHide list
Detected automatically from the text. Citations are also linked where they appear in the judgment. The count shows how many other judgments on BharatTax rely on the same authority.
- CIT v. Manjunatha Cotton & Ginning Factory2,590 citing359 ITR 565 · 2013 · HC · Read judgment
Income Tax Appellate Tribunal, HYDERABAD BENCH “B-SMC”, HYDERABAD
Before: SHRI J. SUDHAKAR REDDY
THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD BENCH “B-SMC”, HYDERABAD BEFORE SHRI J. SUDHAKAR REDDY, ACCOUNTANT MEMBER ITA Nos. 597, 598, 599, 600/Hyd/2017 A.Ys: 2006-07, 2007-08, 2008-09, 2009-10 Shri A. Linga Reddy, vs. The Income Tax Officer Prop: Swapna Wines Ward-1 Shankarapally, Vikarabad. R.R. District PAN- AETPA3504J (Appellant) (Respondent) Assessee by : Shri B. Shanthi Kumar Shri K. Gopala Krishna Revenue by : Date of hearing : 08-05-2018 Date of pronouncement : 08-05-2018 ORDER PER SHRI J. SUDHAKAR REDDY, AM: All these appeals are filed by the assessee directed against separate but identical orders of the Ld. CIT(A), passed u/s 250 of the IT Act, 1961 (the Act), wherein the order passed by the Assessing Officer (A.O) u/s 271(1)(c) of the ‘Act’ has been confirmed. The assessee has filed the following additional grounds of appeal. “1. The Ld. CIT(A) failed to note that the A.O did not specify the reason for levying penalty u/s 271(1)(c) of the IT Act, 1961 in the assessment order dt. 31.03.2015, as to whether for concealment of income or for furnishing of inaccurate particulars of income. 2. The Ld. CIT(A) failed to note that the A.O did not specify the reason for levying penalty u/s 27(1)(c) of the IT Act 1961 in the Show cause notice dt. 31.03.2015 as to whether for
2 ITA Nos. 597, 598, 599, 560/Hyd/2017 Shri A. Linga Reddy, Hyderabad. concealment of income or for furnishing of inaccurate particulars of income”. 1.1 As there are legal grounds and all the facts are on record, I admit these gounds.
After hearing rival contentions, I find that the Hon’ble Karnataka High Court in the case of CIT Vs M/s SSA’s Emerald Meadows, ITA No. 380 of 2015 judgment dated 23.11.2015 had at para 3 and 4 held as follows:
“3. The Tribunal has allowed the appeal filed by the assessee holding the notice issued by the A.O u/s 274 r.w.s 271(1)(c) of the IT Act to be bad in law as it did not specify which limb of section 271(1)(c) of the Act, the penalty proceedings had been initiated i.e., whether for concealment of particulars of income or furnishing of inaccurate particulars of income. The Tribunal, while allowing the appeal of the assessee, has relied on the decision of the Division Bench of this Court rendered in the case of CIT Vs. Manjunatha Cotton and Ginning Factory (2013) 359 ITR 565. 4. In our view, since the matter is covered by judgment of the Division Bench of this Court, we are of the opinion, no substantial question of law arises in this appeal for determination by this Court. The appeal is accordingly dismissed”. 2.1 The Hon’ble Supreme Court vide order in SLP No. 11485/2016 dated 05.08.2016 in the case of CIT Vs M/s SSA’s Emerald Meadows, ordered as follows:
“Delay condoned We do not find any merit in this petition. The special leave petition is, accordingly, dismissed. Pending application, if any, stands disposed of”. 2.2 Hence, the issue in question is no more res-integra.
2.3 The assessee has filed the copies of the notice issued u/s 274 of the Act r.w.s 271(1)(c) for all the impugned
3 ITA Nos. 597, 598, 599, 560/Hyd/2017 Shri A. Linga Reddy, Hyderabad. assessment years which are at pages 31 to 34 of the paper book. The second line of the notices has reads as follows: “Have concealed the particulars of your income furnished, inaccurate particulars of such income” 2.4 Thus it is clear that the notice did not specify the limb of Sec. 271(1)(c) of the IT Act, under which penalty proceedings have been initiated. Hence, respectfully following the judgment of Hon’ble Supreme Court (supra) on this issue, I cancel all the orders of penalty in all these cases for all the years as bad in law. 4. In the result all the appeals of the assessee are allowed. Pronounced in the open court on 08th May, 2018.
Sd/- (J. SUDHAKAR REDDY) ACCOUNTANT MEMBER
Hyderabad, Dated: 08th May, 2018. KRK 1) Shri A. Linga Reddy C/o. B. Shanthi Kumar, Adv, 111, Taramandal Complex, 5-9-13, saifabad, Hyderabad. 2) ITO, Ward-(1), Vikarabad. 3) CIT(A) -2, Hyderabad. 4) The Pr.CIT, Range-2, Hyderabad. 5) The Departmental Representative, I.T.A.T., Hyderabad. 6) Guard File
More judgments on Section 271(1)(c)
- Ajaybhai Dineshbhai Bagdai, Near Central… vs The Income Tax Officer, Ward-1(2)(1), New…ITA 74/RJT/2026[2013-14]Status: Disposed19 Oct 2026AY 2013-14
- Shalin Jayantbhai Desai, Vadodara vs ACIT, Circle-4(2), Vadodara Present…ITA 2569/AHD/2026[2010-11]Status: Disposed19 Oct 2026AY 2010-11
- Neo Structo Construction P. Ltd., Ahmedabad vs The Pr. CIT- 3, AhmedabadITA 1216/AHD/2026[2015-2016]Status: Disposed16 Oct 2026AY 2015-2016
- Hetal Vinodchandra Sheth, Ahmedabad vs The ITO, Ward-5(3)(1), AhmedabadITA 2370/AHD/2025[2014-15]Status: Disposed16 Oct 2026AY 2014-15
- Hetal Vinodchandra Sheth, Ahmedabad vs The ITO, Ward-5(3)(1), AhmedabadITA 2369/AHD/2025[2014-15]Status: Disposed16 Oct 2026AY 2014-15
Recent GST High Court judgments
Search GST case law →- M/S. Mehra Mac Industries Private Limited vs. The Deputy State Tax OfficerTelangana · 30 Oct 2026
- Santosh Das And Anr. vs. Union Of INDIACalcutta · 30 Oct 2026
- M/S Rama Krishna Industries vs. State Of Hp And OthersHimachal Pradesh · 30 Oct 2026
- Smt Usha W/O Shri Tarun vs. Union Of INDIARajasthan · 29 Oct 2026
- M/S Maruti Nandan Minetech Private Limited vs. The Joint CommissionerRajasthan · 29 Oct 2026