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2023 (6) TMI 398 - AT - Income TaxPenalty u/s 271B - Addition of total sales/turnover/gross receipts of the assessee which belongs to the Principal Dealer - assessee’s contention that the assessee was merely working as a commission agent for M/s. Anika Bajaj and have made bookings for the principal outlet - HELD THAT:- It is for the AO or CIT (A) to make adequate inquiries from the Principal Outlet M/s. Anika Bajaj to find out whether the assessee was working as an agent for it or not. Once the assessee had categorically stated that the assessee was working for the main outlet on commission, then the consideration received for sale cannot be considered as turnover of the assessee or receipt of the assessment. Assessee has filed supporting document like form 26AS (which shows assessee was regularly receiving commission payment from the Principal Outlet and Letter of appointment issued appointing assessee as commission agent in M/s. Anika Bajaj which clearly shows that the assessee was carrying its agency business for and on behalf of M/s. Anika Bajaj). Since the gross turnover for the period under consideration was less than Rs. 1.00 crore, hence the accounts are not required to be audited as per section 44AB - Hence penalty imposed by the lower authorities was without any basis. Appeal of assessee allowed.
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