Itta/666/2014 Of Commissioner Of Income Tax (Tds) v. M/S Country Club India Limited

HIGH COURT OF JUDICATURE AT HYDERABADFOR THE STATE OF TELANGANA AND THE STATE OF ANDHRAPRADESH PRESENT THE HON’BLE THE CHIEF JUSTICE SRI KALYAN JYOTISENGUPTA AND THE HON’BLE SRI JUSTICE SANJAY KUMAR I.T.T.A. NOs.666 AND 667 OF 2014 DATED:29.1.2015 Between: Commissioner of Income Tax (TDS)I.T. Towers, A.C. GuardsHyderabad … Appellant And M/s. Country Club India LimitedH.No.:6-3-1219, BegumpetHyderabad … Respondent THE HON’BLE THE CHIEF JUSTICE SRI KALYAN JYOTISENGUPTA AND THE HON’BLE SRI JUSTICE SANJAY KUMAR COMMON JUDGMENT:(per the Hon’ble The Chief Justice Sri Kalyan JyotiSengupta) Pre-admission notice has already been issued inthese appeals. We have heard Mr.B.Narasimha Sarma, learnedcounsel for the appellant – revenue. After hearing him andgoing through the impugned judgment and order of thelearned Tribunal, we thought it fit to admit these appealson the following suggested question of law and dispose ofthe same by this common judgment. In the facts and circumstances of thecase, whether the Hon’ble Tribunal(ITAT) is correct in law in deleting thepenalty imposed under Section 272A(2)(k) of the Income Tax Act 1961 with afinding that it is not a fit case forimposing of the said penalty? We have seen the discussion and findings of thelearned Tribunal in the impugned judgment and order andit appears that the learned Tribunal after noting the fact,waived the penalty, but it has not mentioned, whether on the facts and circumstances of the case, penalty can bewaived totally or not and whether it had a power to do soin the peculiar facts and circumstances of the case or not.In the absence of any such discussion, we think that fullwaiver of penalty of huge amount cannot be accepted.We therefore set aside the impugned judgment and orderof the Tribunal. We direct the Tribunal to decide thequestions as indicated in our order. This exercise shall bedone within a period of three months from the date ofcommunication of this order. The appeals are accordingly allowed. There shall beno order as to costs. ________________________ K.J. SENGUPTA, CJ _______________________ SANJAY KUMAR, J 29.1.2015 bnr