Itta/332/2014 Of Commissioner Of Income Tax-Iii v. M/S. Siddi Jewellers

HIGH COURT OF JUDICATURE AT HYDERABADFOR THE STATE OF TELANGANA AND THE STATE OF ANDHRAPRADESH THE HON’BLE THE CHIEF JUSTICE SRI KALYAN JYOTI SENGUPTA AND THE HON’BLE SRI JUSTICE SANJAY KUMAR AND I.T.T.A. No. 332 of 2014 Date: 10.06.2014 Between: Commissioner of Income Tax-III,Hyderabad. … Appellant And M/s. Siddi Jewellers, Hyderabad. … 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. 332 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 17.6.2013 in relation tothe assessment year 2006-07 on the following suggested question oflaw. “In the facts and circumstances of the case, whetherthe Tribunal (ITAT) is correct in law in upholding the order ofcancellation of penalty levied under Section 277(1)(c) of theIncome Tax Act, 1961, though the concealment of incomeby the respondent-assessee is well established by thematerial on record and the reasons mentioned in the penaltyorder issued by the Assessing Officer? We have heard Sri B. Narasimha Sarma, the learned Counsel forthe appellant, and gone through the impugned judgment and order of thelearned Tribunal. The learned Tribunal on fact found that pre-conditions for initiationof penalty proceedings under Section 271(1)(c) of the Income Tax Act,1961 are not fulfilled. Hence, the penalty proceedings were dropped. We do not find any element of law to decide as the question suggestedrelate to the appreciation of fact. It is not argued that the fact finding bythe learned Tribunal is perverse. Hence, this appeal is dismissed. There will be no order as to costs. Date: 10.06.2014GBS ___________________K.J. SENGUPTA, CJ ___________________SANJAY KUMAR, J