Little Star commodities Pvt. Ltd., Howrah V. ITO, Ward 6(2), Kolkata

ITA 455/KOL/2024

• Counselvise Citation: [2024] 130 COUNSELVISE.COM (IT) 5484 (ITAT-KOLKATA)
• Duration Of Justice: 5 month(s) 14 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 19-08-2024
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: C
• Next Hearing Date: 11-08-2024
• Assessment Year: 2012-2013
• Appeal Filed On: 05-03-2024
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Section: 271(1)(c)

Judgement Text

ITA No. 455/KOL/2024 (A.Y. 2012-2013) Little Star Commodities Pvt. Limited 1 THE INCOME TAX APPELLATE TRIBUNAL, ‘C’ BENCH, KOLKATA Before Shri Rajpal Yadav, Vice-President (KZ) & Shri Rajesh Kumar, Accountant Member I.T.A. No. 455/KOL/2024 Assessment Year: 2012-2013 Little Star Commodities Pvt. Limited,.........Appellant 76, G.T. Road, Bally, Howrah-711201 [PAN:AACCL0083F] -Vs.- Income Tax Officer,.....................................Respondent Ward-6(2), Kolkata, Aayakar Bhawan, P-7, Chowringhee Square, Kolkata-700069 Appearances by: Shri R.K. Agrawal, A.R., appeared on behalf of the assessee Shri Jitendra Kantilal Surti, JCIT, Sr. D.R., appeared on behalf of the Revenue Date of concluding the hearing : August 12, 2024 Date of pronouncing the order : August 20, 2024 O R D E R Per Rajpal Yadav, Vice-President (KZ):- The present appeal is directed at the instance of assessee against the order of ld. Commissioner of Income Tax (Appeals), ITA No. 455/KOL/2024 (A.Y. 2012-2013) Little Star Commodities Pvt. Limited 2 National Faceless Appeal Centre (NFAC), Delhi dated 27 th January, 2024 passed for Assessment Year 2012-13. 2. The solitary grievance of the assessee is that ld. CIT(Appeals) has erred in confirming the penalty amounting to Rs.1,99,911/- levied under section 271(1)(c) of the Income Tax Act. 3. Brief facts of the case are that the assessee has filed its return of income on 04.09.2012. The assessee had disclosed a commission income of Rs.1,34,000/-. It has been alleged by the ld. Assessing Officer that the assessee had provided accommodation entry and from that activity shown commission @ 0.05%, i.e. half percent. The ld. Assessing Officer was of the view that half-percent of the commission is on the lower side and, therefore, he estimated the commission @0.10%, in other words @ 1%. The ld. Assessing Officer in this way determined the alleged commission income of the assessee at Rs.7,80,955/-. The ld. Assessing Officer has initiated the penalty proceeding against the assessee under section 271(1)(c) of the Income Tax Act, on the addition of Rs.6,46,955/-, alleged commission income. He imposed a penalty of Rs.1,99,911/-, which is equivalent to 100% of tax sought to be evaded by the assessee. 4. Appeal to the ld. CIT(Appeals) did not bring any relief to the assessee. 5. With the assistance of ld. Representatives, we have gone through the record carefully. Though earning of alleged ITA No. 455/KOL/2024 (A.Y. 2012-2013) Little Star Commodities Pvt. Limited 3 commission income by providing accommodation entry in itself is a doubtful activity, but ld. Assessing Officer has not doubted this activity. He has accepted the alleged commission income of the assessee in providing accommodation entry of huge sum of Rs.78.9 crores. He only made changes that instead of half percent, it should be 1% of commission income. The assessee should have earned in this activity. To our mind, the income of the assessee has been revised on an estimate basis, which is based on difference of opinion without any scientific method. Therefore, on such an issue the ld. Assessing Officer as well as by the ld. CIT(Appeals) should have not been visited the assessee with penalty. Accordingly, we allow this appeal of the assessee and delete the penalty. 6. In the result, the appeal of the assessee is allowed. Order pronounced in the open Court on 20/08/2024. Sd/- Sd/- (Rajesh Kumar) (Rajpal Yadav) Accountant Member Vice-President (KZ) Kolkata, the 20 th day of August, 2024 Copies to :(1) Little Star Commodities Pvt. Limited, 76, G.T. Road, Bally, Howrah-711201 (2) Income Tax Officer, Ward-6(2), Kolkata, Aayakar Bhawan, P-7, Chowringhee Square, Kolkata-700069 ITA No. 455/KOL/2024 (A.Y. 2012-2013) Little Star Commodities Pvt. Limited 4 (3) Commissioner of Income Tax (Appeals), National Faceless Appeal Centre (NFAC), Delhi; (4) CIT - , Kolkata; (5) The Departmental Representative; (6) Guard File TRUE COPY By order Assistant Registrar, Income Tax Appellate Tribunal, Kolkata Benches, Kolkata Laha/Sr. P.S.