9911796707
TMI Blog2025 (3) TMI 450X X X X Extracts X X X X X X X X Extracts X X X X ..... 3,20,000/- imposed u/s 272B of the IT Act by the Assessing Officer and confirmed by Ld. CIT(A)/NFAC is not correct.
We therefore direct the Assessing Officer to reduce the penalty of Rs. 23,20,000/- to Rs. 10,000/- only. Thus, the grounds raised by the assessee are partly allowed. X X X X Extracts X X X X X X X X Extracts X X X X ..... at best may sustain a penalty of only Rs. 10,000/- on the assessee. It is pertinent to note that in the case of assessee firm's successor P N Gadgil and sons Ltd. similar issue arose for A.Y. 2018-19 where the ld. AO accepted these contentions and restricted the penalty only to Rs. 10,000/-. 4.3 I have gone through the grounds of appeal, statement of facts, penalty order and the submissions of the appellant. The case law referred by the appellant in the case of ACIT Circle 49(1), New Delhi Vs. DHTC Logistics Ltd. vide ITA No. 675, 676 and 677/Del /2012 of the Hon'ble ITAT, Delhi Bench B, New Delhi, wherein it has been clarified penalty u/s. 272B of Rs. 10,000/- is linked to the person and not with the number of default. In the instant case the appellant had failed to mention the PAN of 232 persons. The Hon Tribunal held that the penalty of Rs. 10,000/- for each person. In the appellant case there are 232 persons and 232 transactions where failure under rule 114C(2) prescribed at Sr. No. 18 I Rule 114 B as stipulated under section 139A has been noticed. The Assessing officer has elaborately discussed about the quantum of penalty to be leviable in this case. Under the circ ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ovisions will not be applicable and a penalty of Rs. 10,000/- only was leviable. On the basis of all the above contentions, Ld. AR requested to restrict the penalty of Rs. 23,20,000/- to Rs. 10,000/- only. 7. Ld. DR appearing from the side of the Revenue relied on the orders passed by the subordinate authorities and requested to confirm the same. 8. We have heard Ld. Counsels from both the sides and perused the material available on record. In this regard, we find that section 139A(5)(c) requires the assessee to inform the PAN of all such purchasers who purchased jewellery of Rs. 2,00,000/- or more in one bill. During the relevant period, there were 232 instances wherein the assessee failed to inform the PAN of such purchasers to the Department. Accordingly, penalty proceedings u/s 272B was initiated and a penalty of Rs. 23,20,000/- was imposed, (i.e. 232 defaults at the rate of Rs. 10,000/- per default) which was confirmed by Ld. CIT(A)/NFAC. It was the contention of Ld. AR that previously the assessee runs the business in the status of partnership firm and subsequently converted the business into private limited company. In the case of private limited company, the Assessing Off ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... section 139A, or to intimate such number as required by sub-section (5A) or sub-section (5C) of that section, quotes or intimates a number which is false, and which he either knows or believes to be false or does not believe to be true, the Assessing Officer may direct that such person shall pay, by way of penalty, a sum of ten thousand rupees [for each such default]. [(2A) If a person, who is required to quote his permanent account number or Aadhaar number, as the case may be, in documents referred to in sub-section (6A) of section 139A or authenticate such number in accordance with the provisions of the said sub-section, fails to do so, the Assessing Officer may direct that such person shall pay, by way of penalty, a sum of ten thousand rupees for each such default. (2B) If a person, who is required to ensure that the permanent account number or the Aadhaar number, as the case may be, has been,- (i) duly quoted in the documents relating to transactions referred to in clause (c) of sub-section (5) or in sub-section (6A) of section 139A ; or (ii) duly authenticated in respect of transactions referred to under sub-section (6A) of that section, fails to do so, the Assessing O ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
