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Income Tax Appellate Tribunal, KOLKATA BENCH “B” KOLKATA
Before: Shri S.S.Godara & Dr. A.L. Saini
PER S.S.Godara, Judicial Member:
- This assessee’s appeal for assessment year 2008-09 arises against Commissioner of Income Tax (Appeals)-14 Kolkata’s order dated 31.01.2018 passed in case No.68/CIT(A)-14/Wd-47(3)/2016-17 upholding Assessing Officer’s action imposing penalty of ₹25,000/- involving proceedings u/s 271A of the Income Tax Act, 1961; in short ‘the Act’. Heard both the parties. Case file perused.
The assessee’s sole substantive grievance pleaded in the instant appeal challenges correctness of both the lower authorities action imposing u/s 271A for not maintaining books of account regarding derivatives trading in stock exchange. The Assessing Officer as well as CIT(A) are of the view that the assessee’s future and options transactions (F&O) value reads a figure of ITA No.641/Kol/2018 A.Y. 2008-09 Sangeeta Kesharwani. Vs. ITO Wd-47(3), Kol Page 2 ₹15,77,30,672.32 in the impugned assessment year and therefore, she was supposed to maintain her books of account u/s.44AB of the Act. There is dispute that the assessee’s profits u/s44AF @ 0.25% on turnover come to ₹39,49,110/- as against the statutory threshold limit of ₹40 lac u/s 44AF of the Act in the relevant previous year. The tribunal’s co-ordinate bench’s decision in Banwari Sitaram Pasari (HUF) vs. ACIT (2013) 140 ITD 320/29 taxmann.com (Pune Trib.) holds that the turnover in such case of trading of commodities as a speculation activity does not involve total transactions’ figure as adopted by both the lower appellate proceedings. We therefore delete the impugned penalty forming subject-matter of instant lis on this count alone.
This assessee’s appeal is allowed. Order pronounced in the open court 20/11/2019 (लेखा सद%य) ("या'यक सद%य) ( A.L.Saini) (S.S.Godara) (Accountant Member) (Judicial Member) Kolkata, *Dkp (दनांकः- 20/11/2019 कोलकाता । आदेश क" ""त"ल"प अ"े"षत / Copy of Order Forwarded to:- 1. अपीलाथ"/Appellant-Sangeeta Kesharwani, 134F, Sukhi Sansar Apartment, Salkia School Road, Golabari, Howrah-711 106
""यथ"/Respondent-ITO Wd-47(3), 3, Govt. Place (West), Kolkata-700 001 3. संबं3धत आयकर आयु4त / Concerned CIT Kolkata 4. आयकर आयु4त- अपील / CIT (A) Kolkata 5. 7वभागीय "'त'न3ध, आयकर अपील"य अ3धकरण, कोलकाता / DR, ITAT, Kolkata 6. गाड< फाइल / Guard file. By order/आदेश से, // सहायक पंजीकार आयकर अपील"य अ3धकरण, कोलकाता ।