AMSELOR COMMODITY TRADE LLP,DURGAPUR V. A.O., WARD - 1(1), DURGAPUR

ITA 2845/KOL/2025

AI Insights

The case involves Amselor Commodity Trade LLP appealing against penalties imposed by the Income Tax Officer under sections 271D and 271E for alleged violations of sections 269SS and 269T, respectively, concerning cash transactions. The Tribunal found that the cash accepted as capital contributions by the partners and the cash withdrawn from capital accounts did not constitute violations of the cited sections, leading to the decision to set aside the penalties.

• Counselvise Citation: [2026] 140 COUNSELVISE.COM (IT) 838991 (ITAT-KOLKATA)
• Duration Of Justice: 2 month(s) 20 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 17-02-2026
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Assessment Year: 2017-2018
• Appeal Filed On: 27-11-2025
• Laws Referred To: Income Tax Act
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: ANUP BISWAS
• Assessee Lawyers: PRASENJEET RAM
• Keywords: Set aside
• Section: 147; 148; 133A

Judgement Text

" IN THE INCOME TAX APPELLATE TRIBUNAL “A” BENCH, KOLKATA BEFORE SHRI RAJESH KUMAR, AM AND SHRI PRADIP KUMAR CHOUBEY, JM ITA Nos. 2845 & 2846/KOL/2025 (Assessment Year:2017-18) Amselor Commodity Trade LLP 1 No, Laxmi Bai Path, Steel Co- operative Ltd, city Centre, Durgapur, West Bengal-713216 Vs. Income Tax Officer, Ward 1(1) Aaykar Bhawan (Annexe), Aayakar Bithi, City Centre, Durgapur, West Bengal-713216 (Appellant) (Respondent) PAN No. ABFFA3759G Assessee by : Shri Prasenjeet Ram, AR Revenue by : Shri Anup Biswas, DR Date of hearing: 09.02.2026 Date of pronouncement: 17.02.2026 O R D E R Per Rajesh Kumar, AM: 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. Printed from counselvise.com Page | 2 ITA Nos. 2845 & 2846/KOL/2025 Amselor Commodity Trade LLP; A.Y. 2017-18 3. After hearing the rival contentions and perusing the materials available on record, we find that in this case a survey u/s 133A of the Act was conducted at the business premises of the assessee on 13.02.2019, and the case of the assessee was reopened u/s 147 of the Act by issuing notice u/s 148 of the Act. The ld. AO assessed the income at ₹37,77,420/- in the assessment framed . It was observed during the course of survey as well as during assessment proceedings that assessee accepted an aggregate amount of ₹2,60,000/- in cash from each of the partner Shri Manish Sangwan and Shri Sali Behl. The Additional CIT, Central Range-4, Kolkata treated the same amount as accepted in violation of Section 269SS of the Act by ignoring the fact that the same were introduced by the partners of the assessee LLP as capital introductions. Similarly, ld. CIT (A) confirmed the order of the ld. AO. In our opinion, the Provisions of Section 269SS of the Act are not applicable to the capital contributions by the partners in the assessee, LLP. Therefore, no penalty can be levied u/s 271D of the Act. Consequently, we set aside the order of ld. CIT (A) and direct the ld. AO to delete the penalty. The appeal of the assessee is allowed. 2846/KOL/2025 4. The only issue raised by the assessee is against the penalty of ₹3,02,000/- as imposed by the ld. AO u/s 271E of the Act. 5. After hearing the rival contentions and perusing the materials available on record, we find that the partners of the LLP have withdrawn some money in cash aggregating to ₹3,02,000/- from their capital accounts which were treated by the ld. AO to have been withdrawn in violation of Provisions of Section 269T of the Act and imposed penalty of ₹3,02,000/- u/s 271E of the Act. The ld. CIT (A) confirmed the said penalty order passed by the ld. AO. In our considering view the Printed from counselvise.com Page | 3 ITA Nos. 2845 & 2846/KOL/2025 Amselor Commodity Trade LLP; A.Y. 2017-18 provisions of Section 269T are not applicable to the cash withdrawn by the partners and therefore, the order passed by the ld. CIT (A), confirming the penalty order passed by the ld. AO cannot be sustained. Consequently, we set aside the order of ld. CIT (A) and direct the ld. AO to delete the penalty. The appeal is allowed. 6. In the result, the both appeal of the assessee is allowed. Order pronounced in the open court on 17.02.2026. Sd/- Sd/- (PRADIP KUMAR CHOUBEY) (RAJESH KUMAR) (JUDICIAL MEMBER) (ACCOUNTANT MEMBER) Kolkata, Dated: 17.02.2026 Sudip Sarkar, Sr.PS Copy of the Order forwarded to: BY ORDER, True Copy// Sr. Private Secretary/ Asst. Registrar Income Tax Appellate Tribunal, Kolkata 1. The Appellant 2. The Respondent 3. CIT 4. DR, ITAT, 5. Guard file. Printed from counselvise.com "