9911796707
TMI Blog2022 (12) TMI 283X X X X Extracts X X X X X X X X Extracts X X X X ..... MAR KEDIA, A.M.: The captioned appeals have been filed by the Assessee against the order of the Commissioner of Income Tax (Appeals)- XVI, New Delhi ('CIT(A)' in short) of even date 14.06.2019 arising from respective penalty orders passed by the Assessing Officer under Section 271A and 271B of the Income Tax Act, 1961 (the Act) concerning AYs 2010-11. 2. Both the appeals have been heard together ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the Act and therefore, the assessee was under obligation to keep and maintain proper books of account. Owing to such alleged default in maintaining books and 44AA and getting such accounts audited under 44AB of the Act, the AO imposed penalty of Rs.25,000/- by invoking Section 271A of the Act and Rs. 1,50,000/- by invoking Section 271B of the Act. In the first appeal, the CIT(A) confirmed the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... record that the assessee claims to have been a small tax payer and was engaged in cheque/ draft discounting activity on a commission basis for which the income has also been declared on commission basis year after year and has been accepted by deptt. and assessed as such. The assessee claims to have rendered these services and gets a commission thereon. The assessee has contended before the lower ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... or significant risks & reward of ownership of goods continue to belong to the constituent on whose behalf the assessee has acted upon and he was merely concerned with his commission income for the services rendered. 10. In the factual context, we straightaway take notice of Circular No.452 dated 17th March, 1986 issued by the CBDT wherein the question of applicability of Section 44AB in the case ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... relevant assessment year, the assessee can not treated as assessee in default in terms of S. 271A and S. 271B of the Act. The assessee thus has demonstrated reasonable cause for failure to maintain books of account as well as compliance of Section 44AB of the Act in term of Section 271B of the Act. 12. Hence, the penalty imposed under Section 271A and Section 271B of the Act is quashed. 13. In t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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