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TMI Blog2023 (11) TMI 1139X X X X Extracts X X X X X X X X Extracts X X X X ..... for collection of moneys from the post paid subscribers of Airtel, on behalf of Airtel in accordance with the terms of the Agreement and the Airtel shall pay the commission / incentives. The agent is liable to pay tax only on the commission / incentive received. AO levied penalty on the assessee as the cash deposit during the F.Y. 2016-17 exceeded the threshold limit u/s 44AB of the Act, treating the same as turnover of the assessee, though he is only an agent who provided services for the Principal. The only contention of the assessee is only an agent / service provider and he was under bonafide belief that he was not liable to get the books of accounts audited as the commission income was below the threshold limit and thus the assesse ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of Commissioner of Income Tax (Appeals) [CIT(A)], National Faceless Appeal Centre (NFAC), Delhi vide DIN Order No. ITBA/NFAC/S/250/2022-23/1049765296(1) dated 15.02.2023, arising out of assessment order passed u/s 271B of the Income Tax Act, 1961 (in short Act ) dated 28.11.2021 for the Assessment Year (A.Y.) 2017-18. 2. Brief facts of the case are that the assessee, an individual carrying on business under the name and style of M/s Aditya Communications as agent / service provider, had e-filed his return of income on 31.03.2018, declaring total income at Rs. 3,01,680/-. Subsequently, the case was selected for scrutiny under CASS and statutory notice u/s 143(2) and 142(1) of the Act along with detailed questionnaire were also issued ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... limit as per section 44AB of the Act, the AO had levied penalty of Rs. 92,181/- u/s 271B of the Act. 3. Aggrieved by the order of the AO, the assessee preferred an appeal before the CIT(A) and the Ld. CIT(A) held that since the assessee failed to get his accounts audited u/s 44AB of the Act, treated the cash deposits as turnover of the assessee, though it was affected on behalf of the Principal and since the assessee was getting commission and discounts on such sales. 4. Aggrieved by the order of the Ld. CIT(A), the assessee preferred an appeal before the Tribunal by raising the following grounds : 1. The order of the learned Commissioner of Income Tax (Appeals) is contrary to the facts and also the law applicable to the facts of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the Tribunal in the case of Anunoy Mukherjee Vs. ITO, Ward-1(4), Durgapur in I.T.A.No. 555/Kol/2022 dated 23.02.2023 in support of his contention and pleaded to set aside the order passed by the Ld. CIT(A) and allow the appeal of the assessee. 7. Per contra, the Ld. DR relied on the order of the Ld. CIT(A) and the decision of Hon ble High Court of Allahabad in the case of Attara Gas Service Vs. Commissioner of Income Tax, Kanpur [2014] 50 taxmann.com 445 (Allahabad) and pleaded to uphold the order passed by the Ld. CIT(A) and dismiss the appeal of the assessee. 8. We have heard both the parties and perused the material available on record. The only issue that arises for consideration is whether the Ld. CIT(A) is justified in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... AA, section 271B, section 271BA, section 271BB, section 271C, section 271CA, section 271D, section 271E, section 271F, section 271FA, section 271FAB, section 271FB, section 271G, section 271GA, section 271GB, section 271H, section 271-I, section 271J, clause (c) or clause (d) of sub-section (1) or sub-section (2) of section 272A, sub-section (1) of section 272AA or section 272B or sub-section (1) or sub-section (1A) of section 272BB or sub-section (1) of section 272BBB or clause (b) of sub-section (1) or clause (b) or clause (c) of sub-section (2) of section 273, no penalty shall be imposable on the person or the assessee, as the case may be, for any failure referred to in the said provisions if he proves that there was reasonable cause for ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sales turnover. Before us, it is stated by the ld. Counsel for the assessee that the assessee was under the impression that as income is only from commission and the deposit of cash on receipt from various persons for sale of recharge coupons is not its sales but is amount collected on behalf of Telecom company. Further it is submitted that it was the first year of its business. 6. We find force in the contention of the ld. Counsel for the assessee and considering the fact that assessee is receiving commission income and tax is deducted at source by the Telecom company treating the cash deposits as amount collected on behalf of the Telecom company from various customers and deposited in the bank account and commission on such deposits ..... X X X X Extracts X X X X X X X X Extracts X X X X
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