2016 (7) TMI 1551

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.... The issue raised in the ground of appeal is against the confirmation of penalty levied under section 271B of the Income Tax Act, 1961 of Rs. 28,231/- by the ld. CIT(A) as imposed by the AO. 3. Brief facts of the case are that the assessee was reimbursed varius expenses incurred by it by clients/principles and should not have been considered and taken for determination for applicability of section 44AB of the Act. 4. The return of income was filed by the assessee on 22.12.2008, declaring loss of Rs. 47,848/- which was processed under section 143(3) of the Act. The case was reopened under section 147 and notice u/s 148 was issued to the assessee on the ground that the assessee has shown incorrect receipt in the books of account viz aggreg....

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....orked out to Rs. 26 lakhs during the year. The assessee submitted that after reducing the amount reimbursed by the clients, the turnover was less than Rs. 40 lakhs. The assessee also relied on CBDT Circular No.452 dated 17.3.1986 which states that in the case of agent whose position is similar to Kaccha arhatia, the turnover is only the commission (1) assessee like the kaccha arhatia brings the private contract between customs authorities, dock authorities and shipping line authorities and the importer/exporter. (2) Assessee does not have dominion or any legal title over goods imported or exported. (3) Assessee is agent and at all times transacts with these authorities as clearing agent only and not as owner of goods to be imported /exporte....

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....he assessee was to the tune of Rs. 14,51,994/- whereas the total receipts as per TDS certificates on which TDS was deducted were Rs. 56,46,246/- which was inclusive of reimbursement of expenses to the tune of Rs. 26 lakhs and thus, if we subtract the amount reimbursement from the gross receipt as per TDS certificate which is Rs. 56,46,246/-, the turnover of the assessee would be less than Rs. 40 lakhs. We also find merit in the case of assessee that the CBDT circular mentioned above provides that in case of agent who was placed as the kaccha arhatia, the turnover would be the commission service charges only and not gross receipt received by the assessee including the reimbursements. The case of the assessee is also supported by the decision....