9911796707
TMI Blog2018 (11) TMI 211X X X X Extracts X X X X X X X X Extracts X X X X ..... apply in the case of the assessee. Since the assessee failed to get the accounts audited as per Section 44AB(a) of the Act, therefore, assessee is liable for penalty u/s 271B of the Act. The assessee did not make out any case of reasonable cause so as to claim immunity from the penalty. - Decided against assessee. - ITA.No.4152/Del./2018 - - - Dated:- 1-11-2018 - SHRI BHAVNESH SAINI, JUDICIAL MEMBER For The Assessee : Sh. Jaspal Singh Sethi, Adv For The Revenue : Dr. Anjula Jain, Sr. DR ORDER This appeal by assessee has been directed against the order of Ld. CIT(Appeals)-19, New Delhi dated 01.05.2018 for AY 2009-10, challenging the levy of penalty u/s 271B of the Act. 2. I have heard Ld. Representatives of bo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... me calculated @ 4.5% of the gross receipts may be assessed as taxable income of the assessee. The AO accordingly, calculated net income @ 4.5% of the total receipts which comes to ₹ 13,30,126/-. Since assessee had already declared income of ₹ 2,60,000/-, therefore, addition of ₹ 10,70,126/- was made to the returned income. The AO also noted that since the assessee has failed to get his accounts credited u/s 44AB of the Act for the year under consideration, therefore, penalty proceedings u/s 271B was initiated. The AO at the penalty proceedings again asked for the explanation of the assessee to which assessee explained that assessee has total number of six trucks which are plied and income on the basis of Section 44AE was o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , by way of penalty, a sum equal to one-half per cent of the total sales, turnover or gross receipts, as the case may be, in business, or of the gross receipts in profession, in such previous year or years or a sum of [one hundred fifty thousand rupees], whichever is less. 5.2 Section 44AB of the Act provides every person ( a) Carrying on business shall, if his total sales, turnover or gross receipts, as the case may be, in business exceed or exceeds ₹ 1 crore in any previous year get his accounts of such previous year audited by an Accountant before the specified date and furnish by that date the report of such audit in the prescribed form duly signed and verified by such Accountant and setting forth such particulars as ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . CIT(A), therefore, correctly held that the turnover of the assessee because of this business activity has reached to ₹ 2.95 crores. Thus, the assessee did not declare correct income in the return of income and that the assessee had not only income from plying of the six trucks but was also doing business of hiring trucks from which the assessee also earned business commission income and that is why the gross receipts of the assessee has exceeded ₹ 1 crore. Since the gross receipts of the assessee have admittedly exceed ₹ 1 crore, therefore, provisions of Section 44AB(a) of the Act clearly apply in the case of the assessee. The other provisions contained u/s 44AB(b,c,d) would not apply in the case of the assessee. Since t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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