ITO NON CORPORATE WARD 3(4), CHENNAI vs. TMS HAMEEDA AMINA BEEVI, CHENNAI

This appeal of the Revenue is directed against the order of the Commissioner of Income Tax (Appeals)-4, Chennai, dated 14.07.2017, for assessment year 2010-11, deleting the penalty levied by the Assessing Officer under Section 271(1)(c) of the Income-tax Act, 1961 (in short 'the Act').

No one appeared for the assessee inspite of service of notice. Therefore, we heard the Ld. Departmental Representative and proceeded to dispose of the appeal on merit.

Smt. Ruby George, the Ld. Departmental Representative, submitted that the assessee claimed deduction under Section 54 of the Act. According to the Ld. D.R., during the course of survey operation, a statement was recorded under Section 133A of the Act and it was admitted that the land sold was an urban land and no agricultural activity was carried on. Since the assessee willfully claimed deduction under Section 54B of the Act before the Assessing Officer, according to the Ld. D.R., the Assessing Officer has rightly levied penalty under Section 271(1)(c) of the Act. On a query from the Bench, when there are 13 co-owners in respect of the very same property, out of which, 12-co-owners case was allowed by the Tribunal, why the order of the co-ordinate Bench of this Tribunal could not be followed? The Ld. D.R. submitted that no doubt, in respect of 12 co-owners, this Tribunal allowed the appeal by deleting the penalty and the Ld. D.R. fairly submitted that she is leaving the matter to the decision of the Tribunal.

We heard the submission of Ld. Departmental Representative and perused the relevant material available on record. The penalty was levied by the Assessing Officer on all the co-owners. In respect of other co-owners, this Tribunal by an order dated 04.05.2016, deleted the penalty levied by the Assessing Officer. In view of the decision of this Tribunal in respect of the very same property in the case of other co-owners, the penalty levied by the Assessing Officer cannot stand. Accordingly, the CIT(Appeals) has rightly deleted the penalty by following the order of the co- ordinate Bench of this Tribunal. Therefore, this Tribunal does not find any reason to interfere with the order of the lower authority and accordingly the same is confirmed.