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2016 (12) TMI 1144 - AT - Income TaxPenalty u/s. 271AAA - commission income on accommodation bills - Held that:- The assessee has made truthful declaration while recording the statement u/s 132(4) of the Act whereby the assessee claimed that he earned commission income @0.75% of the accommodation bills provided by the assessee and also explained the manner in which the said commission income on accommodation bills is derived , while it is a different matter that at later stage while recording statement u/s 131 of the Act in 19/03/2013, the assessee is not able to produce the brokers to whom commission expenditure @ 2.25% was paid during the course of assessment proceedings in 2013 to prove such payments out of books due to obious reasons cited by us as set out above and the assessee was left with no choice but to surrender additional 2.5% to buy peace and to avoid protracted litigation with the Revenue but the fact remains that the assessee earned 0.75% net commission income on accommodation bills provided by the assessee, while it is a different matter that the assessee declared net commission income 0.75% of the accommodation bills provided by the assessee, after claiming expenditure of 2.5% towards brokerage payable by the assessee to brokers which was ultimately surrendered by the assessee during assessment proceedings as these brokers were not traceable due to sales tax raid on them and the assessee was unable to prove brokerage expenditure incurred by him due to reasons set out above. Thus, based on our above detailed discussions and reasoning as set out above , in our considered view, the penalty is not leviable in the instant case u/s 271AAA of the Act as the assessee is entitled for immunity from penalty u/s 271AAA(2) of the Act and the penalty levied by the AO and as sustained by learned CIT(A) u/s 271AAA of the Act is hereby ordered to be deleted. - Decided in favour of assessee.
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