ABINASH MORE,KOLKATA vs. I.T.O.,WARD-30(1), KOLKATA
Before: SHRI GEORGE MATHAN & SHRI SANJAY AWASTHIAssessment Year: 2017-18
Per Sanjay Awasthi, Accountant Member : The present appeal emanates from order passed u/s. 250 of the Income Tax Act, 1961 (hereinafter referred to as the “Act”) on 20.11.2024 by Ld. CIT(A), NFAC, Delhi. Through this order, the action of the Assessing Officer in confirming the penalty levied u/s. 271B of the Act has been confirmed. 1.1. Briefly, the Assessing Officer has levied the impugned penalty on the ground that the turnover of business of the assessee was to the tune of Rs.21,05,31,563/-. It is seen that the assessee pleaded that he was only a commission agent and the addition made in quantum was settled under the Vivad Se Vishwas Scheme, 2024. However, the Assessing Officer levied the impugned penalty and the same was also confirmed by the Ld. CIT(A).
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Abinash More, AY: 2017-18
2. Before us, the Ld. AR has pleaded that the assessee was under the belief that he was only a commission agent and hence, his turnover was below the limit prescribed for getting the books audited u/s. 44AB of the Act. On this count, the Ld. AR strongly supported that a case u/s. 273B of the Act was made out.
3. The Ld. DR, on the other hand, relied on the orders of the authorities below.
We have considered the rival submissions and gone through the records. It is felt that the assessee could be under a genuine belief that the actual turnover was only the turnover pertaining to the commission income. Accordingly, we feel that a case for reasonable cause is adequately made out u/s. 273B of the Act and we delete the penalty so levied by the Assessing Officer and confirmed by the Ld. CIT(A).
In the result, appeal of the assessee is allowed.
Order pronounced on 19th May, 2025. (George Mathan)
Accountant Member
Dated: 19th May, 2025
JD, Sr. P.S.
Copy to:
1. The Appellant: Shri Abinash More
2. The Respondent. ITO, Ward-30(1), Kolkata
3. CIT(A), NFAC, Delhi
4. Pr. CIT
5. DR, ITAT, Kolkata Bench, Kolkata
6. Guard file.
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Abinash More, AY: 2017-18By Order