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TMI Blog2024 (12) TMI 1174X X X X Extracts X X X X X X X X Extracts X X X X ..... ken the only issue involved in this appeal regarding deletion of penalty of Rs. 1,43,56,339/- on account of violation of provisions of section 269ST of the Act. 3. Brief facts of the case are, search and seizure operations were conducted u/s 132 of the Income-tax Act, 1961 on 29.05.2018 at the premises of M/s. Ritika Private Ltd. at 260, Udyog Vihar, Phase 1, Gurgaon and 280, Udyog Vihar, Phase-II, Gurgaon. During the course of search and seizure operation, it was found from seized documents that the assessee company has grossly violated provisions of section 269ST of the Income-tax Act, 1961 (for short 'the Act') by way of cash receipts of Rs. 2,00,000/- or more from a single person by splitting the invoices against sale of goods to its s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... antiate above facts, assessee submitted detailed chart at Pg 201-212 of the paper book which was duly considered and reproduced by the CIT(A) at pages 5 to 16 of his order. He further submitted that with respect to the balance penalty of Rs. 1,45,56,339/-, on going through the details at PB Pg 201-212, it can be noticed that value of all the invoices/bill no. is below Rs. 2 lacs which have been issued across various stores and different point of time and by different sales person. Thus, the said invoices have been illogically/incorrectly summed up by the Id. AO to create an illusion that invoices were issued at a value of Rs. 2,00,000/- or more and the name of the customer was deliberately not mentioned to circumvent the provisions of secti ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... such cash sales during any day. There is no reason before the AO to treat these bills as raised for one particular person in a given day. The appellant submits that the law does not permit to aggregate different cash sales bills in a day and If the aggregate is Rs. 2 lakhs or more, treat the same violation of the provisions of section 269ST of the Act. 16. On the perusal of the submission of the appellant and data submitted before the Assessing Officer, it is seen that the presumption of the AO at para 7.3.2 that these bills were split so as to accommodate cash sales of Rs. 2 lacs or more to a particular person in a particular day is factually incorrect. It is noticed here that the cash sales invoices of Rs. 2 lakhs or above included in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... or more in a day with respect of single or multiple transactions is essentially connected with the payer, it has to be conclusively proved that the amount is received from a single person in a single day. In the present case, it is mere the presumption of the AO in para 7.3.2 that the aggregate amount of cash sales in a day might have been received from one person. However, there is no basis or supporting evidence to justify the presumption. In view of these facts, the penalty levied at para no.7.3.2 to the extent of Rs. 1,43,56,339/- is hereby deleted." 9. We find that the ld CIT(A) has considered the relevant facts on record and deleted the penalty. Therefore, we do not see any reason to disturb the findings of ld CIT(A) and accordingly ..... X X X X Extracts X X X X X X X X Extracts X X X X
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