9911796707
Advanced Search 
TMI Blog2023 (11) TMI 1139X X X X Extracts X X X X X X X X Extracts X X X X ..... B 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 to the assessee. The assessment was completed u/s 143(3) of the Act, after considering the details and documents filed during the course of assessment proceedings and the assessment order dated 26.12.2019 was passed, accep ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 the case. 2. The learned Commissioner of Income Tax (Appeals) is not justified in sustaining the penalty of Rs. 92,181 levied by the assessing officer u/s 271B of the Act. 3. Any other grounds may be urged at the time of hea ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ee. 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 confirming the penalty levied by the AO u/s 271B at Rs. 92,181/- for not getting the books of account audited u/s 44AB of the Act. On perusal of the Master Service Provider Agreement dated 04.06.2014, held between the Aditya Communications [Prop: Martur ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 the said failure. On similar set of facts, the decision was taken in favour of the assessee by the coordinate bench of 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. For the sake of cla ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t 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 is given by the Telecom company. The reasons cited by the ld. Counsel for the assessee prima facie found to be reasonable because the assessee was under bonafide belief that he was not liable to get the books of accounts audited as the commission income was below the thresh ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
