TMI Blog2021 (7) TMI 575X X X X Extracts X X X X X X X X Extracts X X X X ..... id. Hence, we set aside the order of the CIT(A) and quash the order passed by the Assessing Officer u/s 271AAA. We direct the AO to delete the penalty levied u/s 271AAA - Decided in favour of assessee. - ITA No. 1412/H/2017 - - - Dated:- 13-7-2021 - Shri Satbeer Singh Godara, Judicial Member And Shri Laxmi Prasad Sahu, Accountant Member For the Assessee : Shri P. Murali Mohan Rao For the Revenue : Shri Narayanmurthy Naik ORDER PER L.P. SAHU, A.M.: This appeal filed by the assessee is directed against CIT(A) 12, Hyderabad s order dated 12/05/2017 for AY 2008-09 involving proceedings u/s 271AAA of the Income Tax Act, 1961 ; in short the Act . 2. The assessee has raised originally 4 grounds of appeal. Therea ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sh deposits. Further, statements were recorded u/s.132(4) and both of them denied having made any cash payment/on-money for the purchase of the house property. However, during the post search enquiries conducted with the Union Bank of India, it came to light that the assessee and her husband had entered into an agreement of sale with regard to this property for a consideration of ₹ 3,79,00,000/-, a copy of which was submitted to the bank. When confronted with this evidence, the assessee accepted that the total consideration was in fact ₹ 3,79,00,000/- and that the payment of ₹ 1,59,00,000/- was made in cash. Subsequently, the assessee and her husband filed their returns of income for the AY 2008-09 and offered ₹ 42,5 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ppeal before the ITAT. 6. Before us, the ld. AR of the assessee submitted that the Assessing Officer initiated the penalty proceedings by issue of a notice u/s 274 r.w.s. 271AAA on 28/03/2012. He submitted that while issuing the said notice, the Assessing Officer did not mention whether the notice is issued for concealment of income or for furnishing of inaccurate particulars of income. Therefore, the notice is not validly issued. Consequently, the order passed u/s 271AAA also is not valid. For this proposition, he relied on the following decisions: 1. Smt. Baisetty Revathi 684 of 2016 (AP Telangana HC) 2. Sri Venkat Ram Meka, ITAT Hyd. (ITA No. 889/Hyd/2016) 3. Raghuveer Singh, ITAT Hyd ( ITA No. 522/hyd/2015 4. Gillco Dev ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n sarees. Though the Hon'ble ITAT restricted the additions on these amounts, this does not mean that there is concealment of income as no income was offered in the returns on these issues. 5. Therefore, the provisions of section 271AAA are rightfully applied by the AD and there is no need to specify any charge of concealment or furnishing of inaccurate particulars in the notice u/s 271AAA as the concealment is deemed to be automatic depending on the conditions laid down under the said section. Merely because Hon'ble ITAT restricted some of the additions, this does not mean the character of the concealment or furnishing of inaccurate particulars would change. 6. Without prejudice to the above, it is submitted that mere stri ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the appeal of the assessee is devoid of merit and hence may kindly be dismissed. 8. Considered the rival submissions and perused the material facts on record. The issue in dispute is squarely covered by the decision of the Hon ble Supreme Court in the case of CIT Vs. SSA s Emerald Meadows, [2016] 73 Taxmann.com 248 (SC) wherein the Apex Court upheld the decision of the Hon ble High Court, in which, the Hon ble High Court confirmed the order of the Tribunal and dismissed the appeal of the revenue, who came in appeal against the order of the Tribunal. The Tribunal relying on a decision of Karnataka High Court in case of CIT Vs. Manjunatha Cotton Ginning Factory, [2013] 359 ITR 565/210 allowed the appeal of the assessee holding that not ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... idered view that the ratio laid down by the Hon'ble Apex Court cited herein above is squarely applicable to the present cases before us. It is quite natural that when individuals / HUF maintain Fixed Deposits in piecemeal with various banks, the interest earned on the fixed deposits might be lost sight off as the interest gets automatically accumulated with the deposits. The need to evaluate those Fixed Deposits will arise only when funds are required for a specific purpose. In the case of the assessee-HUF it appears-that the assessee took stock of the Fixed Deposits when they were in the process of purchasing the house property and the interest earned by those Fixed Deposit was inadvertently omitted to be taken into account. Hence, we ..... X X X X Extracts X X X X X X X X Extracts X X X X
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