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TMI Blog2024 (12) TMI 1174X X X X Extracts X X X X X X X X Extracts X X X X ..... the provisions of section 269ST of the Act. Apparently, the standalone amount of these bills is less than Rs. 2 lacs. It is also noticed that AO has not brought on record any name/identity of the persons whom he is alleging to be accommodated by the appellant by raising split bills. Accordingly, it was not justified on his part to presume that there was splitting of cash bills against the appellant with respect to cash sales mentioned. We agree with the contention of the appellant that it is regular phenomena for a brand like appellant company to have such small value cash sales during any particular day. The provision of section 269ST nowhere permits to aggregate/club different cash sales Invoices in a day and treat the same as violation ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... premises of M/s. Ritika Private Ltd. at 260, Udyog Vihar, Phase 1, Gurgaon and 280, Udyog Vihar, Phase-II, Gurgaon. During the course of search and seizure operation, it was found from seized documents that the assessee company has grossly violated provisions of section 269ST of the Income-tax Act, 1961 (for short the Act ) by way of cash receipts of Rs. 2,00,000/- or more from a single person by splitting the invoices against sale of goods to its stores. Accordingly, a reference for initiating penalty proceedings u/s 271DA of the Act was received from the Assessing Officer on the grounds of the violation of the provision of section 269ST of the Act and thus attracted the provisions of section 271DA of the Act. 4. Assessing Officer vide pa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 12, it can be noticed that value of all the invoices/bill no. is below Rs. 2 lacs which have been issued across various stores and different point of time and by different sales person. Thus, the said invoices have been illogically/incorrectly summed up by the Id. AO to create an illusion that invoices were issued at a value of Rs. 2,00,000/- or more and the name of the customer was deliberately not mentioned to circumvent the provisions of section 269ST of the Act. He submitted that it is also pertinent to mention here that on perusal of the data, it may be noted that the invoices bearing no names have been issued throughout the day at different points of time ranging from 11 AM to 9 PM and it cannot be inferred that the same person was pr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tion of the provisions of section 269ST of the Act. 16. On the perusal of the submission of the appellant and data submitted before the Assessing Officer, it is seen that the presumption of the AO at para 7.3.2 that these bills were split so as to accommodate cash sales of Rs. 2 lacs or more to a particular person in a particular day is factually incorrect. It is noticed here that the cash sales invoices of Rs. 2 lakhs or above included in the figures quoted a para 7.3.2, have already been considered by the AO for the purpose of levy of penalty in table at para no.7.1.1 of the penalty order as has been noted above. In this regard, it is noticed from the data submitted before the AO that the date wise bills aggregated by the AO were raised a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... h sales in a day might have been received from one person. However, there is no basis or supporting evidence to justify the presumption. In view of these facts, the penalty levied at para no.7.3.2 to the extent of Rs. 1,43,56,339/- is hereby deleted. 9. We find that the ld CIT(A) has considered the relevant facts on record and deleted the penalty. Therefore, we do not see any reason to disturb the findings of ld CIT(A) and accordingly, the order of the ld. CIT (A) is upheld and the ground raised by the Revenue is dismissed. 10. In the result, the appeal filed by the Revenue is dismissed. ITA NO.84/DEL/2024 11. This appeal is filed by the Revenue against the order of the ld. Commissioner of Income-tax (Appeals)-23, Delhi (hereinafter referre ..... X X X X Extracts X X X X X X X X Extracts X X X X
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