TMI Blog2014 (12) TMI 1336X X X X Extracts X X X X X X X X Extracts X X X X ..... ince the income was below prescribed monetary limit. Thus, there was a reasonable cause in not getting the accounts audited, so from this angle also the penalty is not imposable. In view of these facts, the appeal of the assessee is allowed. - ITA NO.2427/Mum/2013 - - - Dated:- 2-12-2014 - Shri Joginder Singh, Judicial Member And Shri Sanjay Arora, Accountant Member Foe the Appellant : Shri Subodh Ratnaparkhi For the Respondent : Shri Pawan Kumar Beerla ORDER PER JOGINDER SINGH (JM) : The assessee is aggrieved by the impugned order dated 28/12/2012 of the ld. First Appellate Authority, Mumbai, upholding levying penalty u/s 271B of the Income-tax Act,1961 (hereinafter the Act ) amounting to ₹ 1 lakh witho ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Shipping Agency engaged in the business of clearing and forwarding agent on behalf of various clients. The activities of the assessee include clearance of goods and articles from port trust authorities, preparation of documents related to customs. While performing these activities, the assessee claimed to have incurred certain expenditure like steamer freight, ACD charges, terminal handling charges and inland haulage charges, etc on behalf of his clients which are later reimbursed to him by such clients. As per the assessee, the income includes Agency Charges of ₹ 35,25,576/-, steamer freight of ₹ 3,30,88.03/-, brokerage of ₹ 4,405.32/- and transportation charges of ₹ 60,532.26/-. The claim of the assessee is that t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cause taken before him was also not appreciated, thus the assessee is in appeal before this Tribunal. 2.5. Before coming to any conclusion, we are expected to have a glance on facts. There is no dispute to the fact that the assessee was acting as an agent facilitating the contract between the parties and the assessee was only entitled for commission for the services rendered to its clients as carrying and forwarding agent reflecting the receipts of such commission Agency Charges . The breakup of receipts in the books of accounts of the assessee is summarized as under:- Total Receipts Rs.4,98,78,202/- Less: On account of reimbursement from customers of sea freight, documentation ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 248 ITR 256 (Bom), wherein, the assessee acted as an agent between the principle and media and earned commission on the transactions. The Assessing Officer levied penalty for failure to get its account audited. The Hon ble jurisdictional High Court held that since the penalty was deleted by the Tribunal on the finding that the assessee only acted as agent for commission, therefore, penalty was justifiably deleted. Reliance can be placed upon Circular no. 452 dated 17/03/1986 from CBDT. We further note that in the impugned order the ld. Commissioner of Income tax (Appeals) considered the steamer freight charges of ₹ 2,49,952/- twice resulting into exceeding the figures from prescribed monetary limit of ₹ 40 lakhs. It is noted t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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