HIGH COURT OF JUDICATURE AT HYDERABAD FOR THE STATE OF TELANGANA AND THE STATE OF ANDHRA PRADESH THE HON’BLE THE CHIEF JUSTICE SRI KALYAN JYOTI SENGUPTA AND THE HON’BLE SRI JUSTICE SANJAY KUMAR 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 SENGUPTA AND THE 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 the judgment and order of the learned Tribunal dated 17.6.2013 in relation to the assessment year 2006-07 on the following suggested question of law.
“In the facts and circumstances of the case, whether the Tribunal (ITAT) is correct in law in upholding the order of cancellation of penalty levied under Section 277(1)(c) of the Income Tax Act, 1961, though the concealment of income by the respondent-assessee is well established by the material on record and the reasons mentioned in the penalty order issued by the Assessing Officer?
We have heard Sri B. Narasimha Sarma, the learned Counsel for the appellant, and gone through the impugned judgment and order of the learned Tribunal.
The learned Tribunal on fact found that pre-conditions for initiation of 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 suggested relate to the appreciation of fact. It is not argued that the fact finding by the learned Tribunal is perverse.
Hence, this appeal is dismissed. There will be no order as to costs.
K.J. SENGUPTA, CJ SANJAY KUMAR, J Date: 10.06.2014 GBS