9911796707
TMI Blog2022 (6) TMI 1510X X X X Extracts X X X X X X X X Extracts X X X X ..... mitted that the assessee does not maintain the books of account and return is filed as per the presumptive taxation provisions. The assessee deposits the security with Mother Dairy against which he receives the milk products to be delivered. He receives cash on daily basis against milk products and deposits the same in his current account. Thereafter he makes ECS payment to mother dairy. The assessee increases the product value as per the distributor margin indicated by the mother dairy from time to time and he may decrease the margin as per shop to shop. 3. Amount available to the assessee is the net margin to the assessee as disclosed in the return of income. The returned income of Rs. 2,49,210/-. 4. The assessee maintains bank accounts ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... unt and return is filed as per presumptive taxation basis..' The contention of the Appellant has been considered and the order of AO has also been perused. It is seen that the assessee has achieved a total turnover of Rs, 3,19,00,663/- in her business. This turnover figure has already been confirmed by Mother Dairy. The contention of the appellant that the return of income is filed on presumptive taxation basis is not applicable to this turnover figure, It has been held in the case of CIT Vs S.C. Naregal (Kar) 329 ITR 615 that Ignorance of law is no excuse and accordingly the Levy of penalty u/s 27IB was upheld. The AO has given detailed reason on page 2 of his order for levying the penalty. Therefore, considering the facts and circ ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... or Manager of Mother Dairy has also confirmed these facts. The receipts are sent back to the Mother Dairy through ECS on regular intervals. What the assessee gets in this case is only the Commission income. The rate of commission is also determined by the "Mother Dairy fruit and vegetable Pvt. Ltd." The assessee increased the product value as per the distributor margin indicated by the Mother Dairy from time to time and as per shop to shop based on the locality. Revenue has wrongly considered the gross turnover as the sale of the assessee instead of the commission/margin amount earned by the assessee. Hence, keeping in view, the peculiar facts in the instant case and the provisions of 271B and 273B, we hold that the penalty levied be oblite ..... X X X X Extracts X X X X X X X X Extracts X X X X
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