Case Law Details
Hanuman Singh Vs Income Tax Officer (ITAT Jaipur)
The ld AR submitted that a consolidated audit of all the shops to whom license was granted by the Excise department, was carried out at Udaipur by the Chartered Accountant and a consolidated audit report was furnished by him in the name of AOP M/s Umrao Singh & Party (Kota Bundi) group, Udaipur. The consolidated audit report was prepared after taking into account all relevant factors of the assessee as well as of other license holders. The consolidated report in the name of AOP M/s Umrao Singh and party of which the assessee is one of the member. Once the assessment in the hands of AOP has been made then the assessment of the same income in the individual capacity tantamount to double assessment of the same income, which is impermissible in the eyes of law. After considering the facts and circumstances of the case as well as various case laws as mentioned in the submissions of the ld. AR of the assessee, the Bench direct to delete the penalty levied U/s 271B of the Act.
FULL TEXT OF THE ITAT ORDER IS AS FOLLOWS:-
This is an appeal filed by the assessee emanates from the order of the ld. CIT(A), Alwar dated 02/03/2017 for the A.Y. 2009-10. The only issue involved in this appeal is against sustaining the penalty of Rs. 54,710/- U/s 271B of the Income Tax Act, 1961 (hereinafter referred as the Act).
2. Briefly stated facts of the case are that the assessee filed his return of income declaring total income of Rs. 1,27,900/- and agricultural income of Rs. 70,200/- on 16/03/2010 and the same was processed U/s 143(1) of the Act on 24/04/2010. The assessee was also deriving income from liquor business carried on in AOP’s status. The gross receipt shown by the assessee in the liquor business were Rs. 1,09,42,255/-. As per provisions of law, the assessee was to keep its account audited but the assessee has failed to do so, therefore, a Show cause was issued to the assessee in this regard and the Assessing Officer levied the penalty @ 1/2% of the gross turnover U/s 271B of the Act.
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