INCOME TAX OFFICER, BURDWAN vs. PAHARHATI O UTTAR MEMARI COOPERATIVE AGRICULTURAL MARKETING SOCIETY LIMITED, BURDWAN

In this case, there is a delay in filing the appeal and an application for condonation of delay dated 20.12.2023 has been filed. It is stated that appeal scrutiny reports were sent to the PCIT, Asansol through proper channel and the approval was received from the PCIT, Asansol on 17.12.2023, and the application in form no.36 was filed on 20.12.2023 as against the last date of filing of appeal on 13.10.2023 and therefore, there is a delay of 67 days in

The grounds of appeal raised by the Revenue are reproduced as under:

Whether on the facts and circumstances of the case and in law, the Ld. CIT(A), NFAC is justified in allowing the appeal of the assessee by deleting the penalty amounting to Rs. 1,00,40,222/- not appreciating the fact that the penalty amounting to Rs. 1,00,40,222/- was imposed upon the assessee under section 271E of the Act for the violation of the very provision of section 269T of the Act.

The appellant craved leave to make any amend, addition, alteration, modification etc. of the grounds either before the appellate proceedings, or in the course of appellate - proceedings.”

Ground no. 3 is general in nature and hence, separate adjudication is not required.

Ground nos. 1 and 2 are against the deletion of penalty of ₹1,00,40,222/- which had been imposed u/s 271E of the Act for violation of provisions of Section 269T of the Act.

The Ld. Addl./Jt. CIT, Range 1, Burdwan, while imposing the penalty, observed that the assessee made payments on loan or advance given to its members or others in cash of ₹20,000/- or more in a single day and in a single transaction amounting to ₹1,00,40,222/- and made cash payment of loan or advance in contravention of provision of Section 269T of the Income-tax Act, “In this regard the assessee was asked to explain source of cash deposit, and clarification on Investment, advance, loan and others during the F.Y. 2016-17 relevant to the A.Y. 2017-18. Accordingly notices under section 133(6) were issued to Bank Authorities. In response, the assessee manually submitted audited Profit & Loss and Balance Sheet as on 31.03.2017 which was audited by Senior Auditor Grade- I, Burdwan-1 Range, Govt. of West Bengal and uploaded the other documents as well provided explanations as asked for. Assessee was asked to furnish the details of Cash Book Register and expenditure incurred by cash alongwith head wise ledger details for the F.Y. 2016-17 relevant to the A.Y. 2017-18. In the reply, Rupam Ghoshal, accountant cum cashier of the assessee Co- operative society appeared and produced the Cash Book/Day Book and submit the Xerox copy of same for the F.Y. 2016-17 relevant to the A.Y. 2017- 18. From its Cash Book/Day Book, it appears that the assessee had received/accepted or payment made in cash in Rs. 20,000/- or more in a single day or single transaction from/to its members against repayment of KCC Loan, Advance or others loan as also payment and expenses made to his members by cash of Rs. 20,000/- or more in a single day also in single transaction during the F.Y. 2016-17 relevant to the A.Y. 2017-18. In this regard the assessee was show caused vide dtd.19.12.2019 which is reproduced as under:- “Your Accountant cum cashier Rupam Ghoshal, has appeared undersigned office on 16.12.2019 and produce Cash Book/Day Book manually against notice u/s 142(1) of the I.T. Act’1961 dtd. 20.11.2019. From your Cash Book/Day Book it appears that you have received/accepted as also payment and expenses made in cash of Rs. 20,000/- or more in a signal day also in single transaction which is mention as below :- (i) Particular of transactions relating to Rs. 20,000/- or more in a single day also in single transaction:- Sl Particulars Received Payment

In this regard, the order of the ld. CIT (A) is extracted and reproduced as under:-

In the result, the appeal of the Revenue is dismissed.