TaxTMI 
TaxTMI 
2022 (12) TMI 1361
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.... "Act") dated 08.02.2022. 2. Assessee has raised six grounds in the present appeal, all of which relate to challenging the imposition of penalty of Rs.2,04,000/- u/s. 271DA of the Act on account of deposit of cash in the bank account of the assessee, directly by the party, at a different location. The grounds raised by the assessee are reproduced as under: "1. For that the orders passed by the lower authorities are arbitrary, erroneous, without proper reasons, invalid and bad-in-law, to the extent to which they are prejudicial to the interests of the appellant. 2. For that the Ld. CIT (A) erred in confirming the order of the Joint Commissioner levying penalty of Rs.2,04,000/- u/s 271 DA of the Income Tax Act, 1961 on alleged grounds. ....
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....10519286. The Auditor during the course of audit process found that M/s Choudhary Poultry Feed Centre had deposited an amount of Rs.2,04,000/- in cash on 04.07.2018 which contravenes the provisions of Sec.269ST of the Act and reported the same in column No.31 of the Tax Audit Report. 3.1. Based upon the information provided in the Tax Audit Report, the Joint/Additional Commissioner of Income Tax issued a notice u/s. 271DA of the Act requiring the assessee to show cause as to why the penalty should not be imposed for such contravention of provisions of Sec.269ST. The assessee upon receipt of the show cause notice submitted a reply extracts of which are as under: - "This refers to the notice issued u/s 274 r.w.s. 271DA of the Income Tax Ac....
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....ectly into the account of the assessee. He ignored the basic submission that the deposit of cash has been made directly into the account of the assessee. 3.3. Being aggrieved with the action of the Ld. AO, the assessee preferred an appeal before the Ld. CIT(A), who confirmed the action of the AO. Aggrieved, assessee is in appeal before the Tribunal. 4. Before us, ld. Counsel reiterated the above facts and contentions to submit that penalty imposed is to be deleted. He also strongly submitted by referring to the audited financial statement for the FY 2018-19 relevant to AY 2019-20 to point out that revenue from operations of the assessee are in the amount of Rs.56,93,58,069/- and other income of Rs.58,98,992/-, with total revenue of Rs.57,....