Case Law Details
Amrit Breeder Farms Pvt. Ltd. Vs ACIT (ITAT Kolkata)
Ld. Counsel submitted that assessee is an operating company having significant volume of business and its sales are spread over wide range of geographical locations. With such a magnitude of business volumes, it is but natural that some debtor/buyer of its products, more particularly when it deals in breeder, birds, chicks, may deposit the sale proceeds directly into the bank account of the assessee. Against a total volume of sales of Rs.56.93 Cr., one such party has deposited an amount of Rs.2,04,000/- in the assessee’s bank account at a location in the state of Assam whereas the assessee maintained its regular bank accounts at Kolkata. Ld. Counsel further stated that assessee has evidently demonstrated that such a deposit in its bank account by a party in the state of Assam is against its sales realisation and is duly accounted in its books of account and offered for taxation. According to him, the provisions of section 271DA of the Act contains a proviso according to which no penalty shall be imposable if such person proves that there were good and sufficient reason for the contravention.
ITAT find that there exists a good and sufficient reason in terms of proviso to section 271DA for deleting the penalty of Rs.2,04,000/-imposed by the Ld. AO. The facts demonstrated before us are uncontroverted which makes us incline towards the contentions made by the ld. Counsel narrated above. Considering the nature of business of the assessee and one of such transaction of deposit of cash by a party to a remote location in the bank account of assessee against a sales volume of Rs.56.93 Cr., ITAT direct to delete the penalty imposed u/s. 271DA of the Act.
FULL TEXT OF THE ORDER OF ITAT KOLKATA
This appeal filed by the assessee is against the order of Ld. CIT(A), National Faceless Appeal Centre (NFAC), Delhi vide Order No. ITBA/NFAC/S/250/2022-23/1046144381(1) dated 30.09.2022 passed against the penalty order u/s. 271DA of the Income-tax Act, 1961 (hereinafter referred to as the “Act”) dated 08.02.2022.
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