2024 (4) TMI 140

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.... the Income-tax Act, 1961 (hereinafter called "the Act") by the Ld. Commissioner of Income-Tax (Appeals) -23, Delhi is against law and facts on the file in as much as he was not justified to partly uphold the action of the Learned Assessing Officer by restricting the penalty levied u/s 271DA of the Act to Rs. 12,60,300/- as against Rs. 25,78,300/- levied by the Ld. Assessing Officer for alleged splitting of bills made by the Appellant Company during the year under consideration and alleged contravention of the provisions of Section 269ST on cash receipts of Rs. 2,00,000/- or more in AY 2018-19 by ignoring the facts and circumstances of the case and submissions filed on behalf of the Appellant Company." 3. The grounds of appeal are relate....

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....ls into two is obvious i.e. circumventing the provisions of section 269ST. The ld. CIT(A) held that no person issues two bills to the same customer for two different items. The ld. CIT(A) opined that if anyone goes to a shop and purchases 10 items, the bill is one for all the items and the payment is also made in one go. 7. Heard the arguments of both the parties and perused the material available on record. 8. The details are as under: S. No. Name of the Customer Item purchased Date of Invoice Bill Value (in Rs. ) 1 Anubhav Gupta Sherwani kurta Churidar 23.08.2017 155066 2 Anubhav Gupta Shoe 23.08.2017 34000 3 Anubhav Gupta Jodhpuri Trouser 23.08.2017 80500 4 Anubhav G....

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.... 11. Legislative Intention behind introduction of Section 269ST: "Various legislative steps have been taken by the Finance Act, 2017 to curb black money by discouraging cash transaction and by promoting digital economy. These prominently include placing restriction on cash transaction by introduction of new sections 269ST & 271DA to the Incometax Act..........." 2. Chapter XX-B which contains the sections 269SS/T/ST, is titled as "Requirement as to mode of acceptance, payment or repayment in certain cases to Counteract Evasion of Tax." 12. We have examined the judicial proposition on this issue. The Hon'ble Apex Court in the case of Hindustan Steel Ltd Vs. State of Orissa (83 ITR 26) held that held that penalty may n....