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TMI Blog2015 (7) TMI 975X X X X Extracts X X X X X X X X Extracts X X X X ..... ursed, thus the government retains over all control over the stamps. - assessee was having bona fide belief that his case is not liable to audit of the books as the value of stamp is not his turnover and has a role of commission agent. Under these facts and circumstances, I hold that the assessee was under a bona fide belief of being not liable for audit of accounts u/s 44AB; therefore, the penalty imposed u/s 271B is deleted. - Decided in favour of assessee. - ITA No. 287/JP/2014 - - - Dated:- 29-1-2015 - SHRI R.P. TOLANI,J. For The Assessee : Shri Rajendra Kr. Gupta (CA) For The Revenue : Mrs. Neena Jeph (JCIT) ORDER PER: R.P. TOLANI, J.M. This is an appeal filed by the assessee against the order dated 17/12/201 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... at it was eligible only to commission, the value of stamps was not his turnover, consequently the case was not covered by the provisions of Section 44AB as per Stamp Act as well as the CBDT circular No. 452 dated 17/03/1986. The Assessing Officer, however, held that the assessee is not a commission agent and was liable for audit u/s 44AB, penalty was imposed. 3. Aggrieved, the assessee preferred first appeal where penalty was confirmed by the learned CIT(A) by holding as under:- I have considered the facts of the case; penalty order and appellant s written submission. Assessing Officer levied penalty under section 271B on the ground that appellant had turnover exceeding ₹ 40 lakhs but did not get accounts audited. Appellant sub ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ned counsel for the assessee contends that never in the past or subsequent assessments sec. 44AB has been held to be applicable, it is further pleaded that:- (i) The stamp and stamp papers are sold at all the treasuries in the state as per rule 14A 14H of Stamp Act and by licensed vendors. In case where stamps are return by the licensee on his application for leave to restore any other stamps the value of stamps return shall be paid; if treasury officer is satisfied that the stamps returned are not spoiled or damaged and are in a fit condition for being reused. (ii) The CBDT by circular No. 452 dated 17/03/1986 has clarified that the above distinction between a kachha arahtia and a pacca arahtia may also be relevant for the determin ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... stamps on behalf of the government at agreed commission. Therefore, the assessee s case is not covered u/s 44AB alternatively he was under bonafide belief that audit u/s 44AB was not required; the penalty may e deleted. 6. The learned Sr.D.R. supported the order of the lower authorities and contends that in case of stamp papers being damaged or spoiled, the corresponding amount is not reimbursed by the government, which is to be borne out by the assessee. This indicates that the property in goods i.e. stamps stood transferred to the assessee as contemplated by the Sale of Goods Act. The learned CIT(A) has rightly held that the assessee acting as a Pucca Arahtia. 7. I have heard the rival submissions of both the parties and perused th ..... X X X X Extracts X X X X X X X X Extracts X X X X
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