Amselor Commodity Trade LLP Vs ITO (ITAT Kolkata)
Penalty U/s 271D & 271E Deleted – Partner Capital Introduction & Withdrawal Not Hit by Sec. 269SS / 269T – ITAT Kolkata
During survey u/s 133A, AO observed cash introduction of ₹2.60 lakh each by partners in LLP & levied penalty u/s 271D alleging violation of Sec 269SS. Further, cash withdrawals of ₹3.02 lakh from partner capital accounts were treated as violation of Sec 269T & penalty u/s 271E was imposed, which was confirmed by CIT(A).
ITAT held that partner capital contribution cannot be treated as loan or deposit & therefore provisions of Sec 269SS are not applicable. Similarly, withdrawal from partner capital account is not repayment of loan/deposit & Sec 269T does not apply. Consequently, penalties u/s 271D & 271E were deleted & orders of AO / CIT(A) were set aside. Assessee appeals allowed in full.
FULL TEXT OF THE ORDER OF ITAT KOLKATA
These are appeals preferred by the assessee against the penalty order of the Commissioner of Income-tax (Appeals), Kolkata-27, (hereinafter referred to as the “Ld. CIT(A)”] dated 25.09.2025 for the AY 2017-18.
ITA No. 2845/KOL/2025
2. The issue raised by the assessee is against the order of ld. CIT (A) confirming the penalty as imposed by the ld. AO of ₹5,20,000/- u/s 271D of the Act in respect of amount accepted in violation of Section 269SS of the Act.
