GRR HOLDINGS ,HYDERABAD vs. DEPUTY COMMISSIONER OF INCOME TAX ,CENTRAL CIRCLE-3(3), HYDERABAD

We notice at the outset that these twin assessees’ instant eight appeals raise an identical issue of correctness of both the learned lower authorities’ action imposing section 271(1)(b) penalty of Rs.20,000/- each in issue thereby alleging non-cooperation to section(s) 142(1) and 143(2) notices dt.29.10.2018 dt.24.01.2019; respectively, as per the relevant facts in “lead” appeal ITA No.366/Hyd/2021.

Both the learned representatives reiterated their respective stands against and in support of the impugned penalty (ies). Mr. Goutam vehemently contended that the assessees’ non-cooperation to the Assessing Officer’s foregoing twin notices compelled him to frame section 144 “best judgments” / assessments which sufficiently prove that there is hardly any reasonable cause for not imposing the impugned penal action. We find no merit in the Revenue’s foregoing stand. This is for the reason that the issues herein pertains to a search action dt.20.09.2017 wherein the Assessing Officer was already in possession of the corresponding material which ultimately led to the addition(s) made in the relevant assessments framed in these assessment years. We make it clear that apart from this clinching aspect, there is no finding in the Assessing Officer’s penalty orders that there had been any specific failure on assessees’ part to bring on record the necessary evidence in support of their claims, if any. Faced with this situation, we hold that the impugned penalties imposed in these eight appeals are not sustainable in law. The same stand deleted. 4. Same order to follow in the remaining appeals i.e. to 373/Hyd/2021. 5. These twin assessees’ eight appeals are allowed in above terms. A copy of this common order be placed in their respective case files.