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TMI Blog2024 (9) TMI 1374X X X X Extracts X X X X X X X X Extracts X X X X ..... purchases milk pockets in bulk and sells the same on daily basis. His real income is only percentage of commission received from mother dairy, therefore, as per assessee is concern, the gross income is only the commission income. As per the facts on record even the Assessing Officer observed that the assessee has not maintained any books of account and he merely purchases milk on daily basis and sell the same on daily basis remitting the amount collected to the mother dairy and retains the commission income with him. Therefore, as per the facts on record it is not possible on the part of the assessee to maintain any books based on the nature of activities carried on by the assessee. In order to maintain the books and requirement to get his ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ts audited or initiated. During the penalty proceedings, several notices were issued to the assessee but no response from the assessee side, accordingly, the Assessing Officer proceeded to levy of penalty of Rs. 85,236/- is of the turnover, which is less than Rs. 1,50,000/-. Therefore, penalty of Rs. 85,236/- was levied u/s 271D of the Act. 3. Aggrieved with the above order, assessee preferred an appeal before the Ld. CIT(A) and filed detailed submissions before him. After considering the details submissions, the Ld. CIT(A) sustained the penalty levied by Assessing Officer. 4. Aggrieved, the assessee is in appeal before us raising following grounds of appeal:- 1. That the appellant reiterates all the facts and grounds of appeal raised befor ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . That they are supposed to help and inform the taxpayer about their rights and liabilities well within in advance. They should not take disadvantages of the appellant ignorance of law. 8. That the appellant hereby requests to please allow him to raise / delete or amend the any other grounds. That the appellant hereby requests to please allow him to amend any grounds raised hereinbefore. Under the circumstances it is prayed that the penalty Order passed u/s 271B is not fair and just. Hence the appeal has been preferred before your Honour. It is prayed that the penalty imposed on the appellant may be deleted and/or grant any other relief as your Honour may deem fit to meet the end of the justice. 5. At the time of hearing, the Ld. AR submitt ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... : Madan Lal Gupta Vs Income Tax Officer. (Page 48-49) 2. Jitenera Majitha Vs The Commissioner of Income Tax (Appeals) (ITA 181/RJT/2023 dt. 18 August 2023) (ITAT Rajkot) (Para 7). (Page 50-60) (Page 58) 4. That in view the mentioned facts and circumstance therefore he is not expected to be having knowledge as to the relevant laws applicable to a Business. It was a bonafide belief on his part of the appellant constituted a reasonable cause under the Section 2736. 5. The AO passed the assessment order by accepting the appellant income Rs. 81582 (Appellant version). (Assessment Order: Page 19-21). The AO has not raised any issue as to difficulty in assessing income. The appellant has relied upon following case Laws: 1. Haresh Amarsinh Zala Vs ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rajmal Parsuram Todi (1996)222 ITR 691 (Gauhati). That it is apparent and transpired from the record that no prior approval / sanction has been obtained from Jt. CIT before passing a penalty order u/s 271B. (CIT Appeal Order Page 18). The relevant para speaks of the procedure, but no document has been placed on the assessment record. That it is apparent from the Penalty Order under Section 271B (Page 2021) that the no prior approval has been obtained by the department before levying penalty under Section 2718. The appellant has suffered on account of his Illiteracy of financial and tax laws. That, therefore, appellant could not understand the implications regarding his financial transactions and unable to comply with provisions. Under the c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s the sales of mother dairy. Since, the assessee is a small time agent working for the mother dairy, he purchases milk pockets in bulk and sells the same on daily basis. His real income is only percentage of commission received from mother dairy, therefore, as per assessee is concern, the gross income is only the commission income. As per the facts on record even the Assessing Officer observed that the assessee has not maintained any books of account and he merely purchases milk on daily basis and sell the same on daily basis remitting the amount collected to the mother dairy and retains the commission income with him. Therefore, as per the facts on record it is not possible on the part of the assessee to maintain any books based on the nat ..... X X X X Extracts X X X X X X X X Extracts X X X X
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