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TMI Blog2014 (7) TMI 1164X X X X Extracts X X X X X X X X Extracts X X X X ..... levied by DCIT, Circle-51, Kolkata u/s. 271(1)(c) of the Act vide his order dated 31.03.2011. 2. The only issue in this appeal of revenue is against the order of CIT(A) deleting the penalty levied by AO u/s. 271(1)(c) of the Act for furnishing of inaccurate particulars of income in respect to deemed dividend u/s. 2(22)(e) of the Act. 3. Briefly stated facts are that the assessment was completed for the relevant AY 2004-05 u/s. 143(3) of the Act dated 11.09.2006 and addition on account of deemed dividend u/s. 2(22)(e) of the Act was made at Rs. 56,06,165/-, eventually which was enhanced by CIT(A) at Rs. 80 lakhs vide his appellate order dated 23.07.2007. The assessee preferred appeal before ITAT against the CIT(A)'s order and ITAT restore ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s explained that he was soliciting business for the company against which the company paid commission and in fact commission to the extent of Rs. 23,93,830/- was paid during the current assessment year and the said amount was adjusted from the advance of Rs. 80 lacs, which is not in dispute. According to assessee, the advance taken by the assessee was purely for a business connection and not with any intention to violate the provisions of section 2(22)(e) of the Act. The Ld. counsel for the assessee before us also argued that the issue is covered by Hon'ble jurisdictional High Court in the case of Dr. Minati Chakraborty in ItA No. 98 of 2009 dated 16.07.2010 wherein following question of law was referred: "Whether, on the facts and in the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... is country are so complex and complicated that even a person specializing in this fìeld, ìncluding tax administrators, may not understand the law in the correct perspective or a particular provision may go unnoticed because of the number of amendments made to the tax enactments from year to year. Under these circumstances, it would be a travesty of truth and justice to hold that an assessee ought to have known the correct law and comply therewith, even though he was not aware of the provisions. In the case of Kaushal Diwan vs. ITO (1983) 3 ITD 432 (Del) (TM), the learned AM observed, on an analogous situation, that the tax provisions are so complex that even he was not aware of the provision in question till the matter was pla ..... X X X X Extracts X X X X X X X X Extracts X X X X
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