9911796707
TMI Blog2020 (1) TMI 814X X X X Extracts X X X X X X X X Extracts X X X X ..... n time under section 271B. Never the less, it is important to note that admittedly there was the loss from the transactions of purchase and sale of shares and there was the substantial compliance on the part of the assessee for getting the accounts audited. More so, the plea of the assessee that her son has carried out the sale purchase transaction of shares has not been proved wrong. It is also important to note that there was no infirmity in such report was pointed out by the AO. Therefore, assessee under the bonafide belief failed to get the accounts audited and in such facts and circumstances the penalty under section 271B is not warranted. With the above observations, the orders of lower authorities are set aside and the penalty lev ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 43(3) resulting into no loss of revenue. 3 The contention of the assessee for no maintenance of books and non levy of penalty u/s.271B ought to have been accepted. 4 On the facts no such addition/disallowance ought to have been made. 5 The appellant raves leave, to add/to alter and /or modify any ground of appeal. The effective issue raised by the assessee is that the Ld. CIT-A erred in confirming the penalty for a sum of ₹ 1,50,000/- levied by the AO u/s 271B of the Act. 2. The brief facts of the case are that the assessee is an Individual. The assessee in the year under consideration has made large value transactions of sale and purchase of shares ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e same should have been filed in requisite form-4 as the assessee was having the business transactions. 3.4 The AO accordingly issued show cause notice to the assessee for levy of the penalty u/s 271B of the Act for violating the provision of section 44AB of the Act. 4. The assessee in response to the notice submitted that she was of the view that only net profit from share transactions has to be shown in the return of income. The books of account were not maintained as the transactions were made by her son in her name and she was not aware about such a huge transaction. 4.1 The assessee also submitted that she was not aware that the accounting of share transactions as well as audit should hav ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ment. 6. However the Ld. CIT-A observed that the assessee was required to get her books of account audited u/s 44AB of the Act which is not done so. Therefore the Ld. CIT-A upheld the order of the AO. Being aggrieved by the order of the Ld. CIT-A, the assessee is in appeal before us. 7. The Ld. AR before us submitted a paper book running from pages 1 to 50 and submitted that the audit report under section 44 AB of the Act were not furnished under the bona fide believe as there was loss from the sale purchase of the shares. 8. On the other hand, the Ld. DR before us vehemently supported the order of the authorities below. 9. We have heard the rival contentions an ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ing the audited report in form 3CD in time under section 271B of the Act. Never the less, it is important to note that admittedly there was the loss from the transactions of purchase and sale of shares and there was the substantial compliance on the part of the assessee for getting the accounts audited. More so, the plea of the assessee that her son has carried out the sale purchase transaction of shares has not been proved wrong. It is also important to note that there was no infirmity in such report was pointed out by the AO. Therefore, we are of the view that the assessee under the bona-fide belief failed to get the accounts audited and in such facts and circumstances the penalty under section 271B is not warranted. With ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
