Itta/178/2014 Of The Commissioner Of Income Tax-I v. M/S Bhooratnam Construction Company Pvt.ltd

IN THE HIGH COURT OF JUDICATURE, ANDHRA PRADESH ATHYDERABAD THE HON’BLE THE CHIEF JUSTICE SRI KALYAN JYOTI SENGUPTAANDTHE HON’BLE SRI JUSTICE SANJAY KUMAR I.T.T.A. No. 178 of 2014 Date: 13.03.2014 Between: The Commissioner of Income Tax-I,Hyderabad. … Appellant And M/s. Bhooratnam Construction Company Pvt., Ltd.,Secunderabad. … Respondent This Court made the following: THE HON’BLE THE CHIEF JUSTICE SRI KALYAN JYOTI SENGUPTAANDTHE HON’BLE SRI JUSTICE SANJAY KUMAR I.T.T.A. No. 178 of 2014 JUDGMENT:(Per the Hon’ble The Chief Justice Sri Kalyan Jyoti Sengupta) This appeal is sought to be preferred and admitted against thejudgment and order of the learned Tribunal dated 12.10.2011 in relation tothe assessment year 2007-08 on the following suggested questions of law: “(i) Whether in the facts and circumstances of the case, the ITATis justified in canceling the penalty though the fact of concealmentis established in the form of unexplained expenditure andunexplained investment which are detected in the course ofsearch?(ii) Whether in the facts and circumstances of the case, the ITATis justified in canceling penalty when there is shortfall inadmission of additional income under the heads unexplainedexpenditure and unexplained investment?” It appears that the learned Tribunal on fact found that pre-condition for initiation of penalty proceedings has not been satisfied,namely; there is no concealment of income. From the narration of thefact we noticed that the assessee did not conceal the income. Whilepassing the assessment order, it was found that some addition isrequired to be made. We think that this is not a case where penalty proceedingsshould be initiated. The learned Tribunal has taken a correct decision. Hence, the appeal is dismissed. No order as to costs. Date: 13.03.2014ES ___________________ K.J. SENGUPTA, CJ ___________________SANJAY KUMAR, J