HIGH COURT OF ANDHRA PRADESH
Chennakesava Pharmaceuticals
versus
Commissioner of Income-tax
GODA RAGHURAM AND M.S. RAMACHANDRA RAO, JJ.
IT TRIBUNAL APPEAL NOS. 29, 31 & 33 OF 2000
AUGUST 27, 2012
JUDGMENT
M.S. Ramachandra Rao, J.
I.T.T.A. Nos. 29, 33 and 31 of 2000 are filed under section 260A of the Income-tax Act, 1961 (for brevity “the Act”), by M/s. Chennakesava Pharmaceuticals, Vijayawada (hereinafter referred to as “the assessee”) against the common orders of the A. P. Income-tax Appellate Tribunal (Hyderabad Bench “B”), Hyderabad, in I.T.A. Nos. 181, 182 and 183/Hyd/93 for the assessment years 1982-83, 1983-84 and 1984-85 respectively.
2. The assessee had filed its return of income declaring income of Rs. 53,102, Rs. 69,930 and Rs. 91,890 for the assessment years 1982-83, 1983-84 and 1984-85, respectively. An intimation under section 143(1) of the Act was sent for the assessment years 1982-83 and 1983-84.
3. During November, 1985, the Income-tax Department initiated survey operations under section 133A of the Act. The assessee filed revised return declaring an income of Rs. 1,33,102, Rs. 1,64,930 and Rs. 1,76,890 for the assessment years 1982-83, 1983-84 and 1984-85, respectively. The Assessing Officer completed assessments under section 143(3) read with section 148 for the assessment years 1982-83 and 1983-84, vide two separate orders dated March 31, 1989, and for the assessment year 1984-85, he completed assessment on March 27, 1987, under section 143(3) of the Act. The Assessing Officer later passed orders under section 271(1)(c) of the Act levying a penalty of Rs. 50,000, Rs. 62,000 and Rs. 70,985, respectively, for each of the above three years.
4. Challenging the same, the assessee filed appeals to the Commissioner of Income-tax (Appeals) and the said appeals were allowed on October 12, 1992, in favour of the assessee setting aside the penalty imposed on it under section 271(1)(c) of the Act.
5. Aggrieved thereby, the Revenue preferred appeals to the Income-tax Appellate Tribunal, Hyderabad, Bench-B, being I.T.A. Nos. 181, 182 and 183/Hyd/93 for the assessment years 1982-83, 1983-84 and 1984-85, respectively. The Income-tax Appellate Tribunal, by a common order dated January 6, 2000, allowed the above appeals and sustained the penalty imposed on the assessee by the Assessing Officer for the three assessment years 1982-83, 1983-84 and 1984-85.
6. Challenging the same, the above I.T.T.A. Nos. 29, 33 and 31 of 2000 have been filed by the assessee. These three appeals were admitted on September 26, 2000, to consider the following substantial question of law :
“Whether, in the facts and in the circumstances of the case, the Appellate Tribunal was justified in differing with the view taken by the first appellate authority and holding that the penalty was leviable under section 271(1)(c) of the Income-tax Act ?”
7. Sri A.V. Krishna Koundinya, senior counsel for the assessee in these appeals, would submit as follows :
