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TMI Blog2018 (2) TMI 102X X X X Extracts X X X X X X X X Extracts X X X X ..... not be levied. Furthermore, when there is no computation of profits and gains of the business or profession as part of the total income, the assessee society is not amenable to section 44AB of the Act. No doubt, exemption claimed by the assessee society trust u/s 11A has not been granted by the AO and completed the assessment u/s 143 (3) but it will not burden the assessee to get its account audited with retrospective effect so long as registration u/s 12A of the Act is in operation. - Decided in favour of the assessee. - ITA No. 906/Del./2016 - - - Dated:- 25-1-2018 - Shri B.P. Jain, Accountant Member And Shri Kuldip Singh, Judicial Member Assessee By : Shri Ved Jain, Advocate and Shri Ashish Goyal, CA Revenue By : Shri Rav ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ion of the assessee that audit of the assessee as contemplated u/s 12(A)(b) been carried out within the time specified under the Income Tax Act, 1961, no default has been committed and hence no penalty is leviable. 6. On the facts and circumstances of the case, the ld. CIT(A) has erred both on facts and in law in ignoring the contention of the assessee that failure, if any, to carry out the audit under section 271B was under bonafide belief that provisions of section 44AB are not applicable to it and hence no penalty is leviable. 2. Briefly stated the facts necessary for adjudication of the controversy at hand are : The assessee society is registered under section 12A of the Income-tax Act, 1961 (for short the Act ) and has ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rying on business shall, if his total sales, turnover or gross receipts, as the case may be, in business exceed or exceeds one crore rupees in any previous year ; or (b) carrying on profession shall, if his gross receipts in profession exceed [fifty] lakh rupees in any previous year; or (c) carrying on the business shall, if the profits and gains from the business are deemed to be the profits and gains of such person under section 44AE or section 44BB or section 44BBB, as the case may be, and he has claimed his income to be lower than the profits or gains so deemed to be the profits and gains of his business, as the case may be, in any previous year; or (d) carrying on the [profession] shall, if the profits and gains ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... such person is required by or under any other law to get his accounts audited , it shall be sufficient compliance with the provisions of this section if such person gets the accounts of such business or profession audited under such law before the specified date and furnishes by that date the report of the audit as required under such other law and a further report by an accountant in the form prescribed under this section. 8. Bare perusal of the provisions contained u/s 44AB of the Act goes to prove that the same are applicable to the person carrying on business or profession and is required to get its account mandatorily audited by an accountant. But, in the instant case, when assessee is undisputedly a charitable society and is not ..... X X X X Extracts X X X X X X X X Extracts X X X X
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