9911796707
TMI Blog2021 (8) TMI 648X X X X Extracts X X X X X X X X Extracts X X X X ..... - the assessee had entertained the bonafide plea that the receipts earned by him for rendering Management Consultancy Services is only a business receipt and not professional receipt. This bonafide plea of the assessee has not been doubted by the Revenue but the Revenue had only tried to take different stand by giving different interpretation to the provisions of Section 44AA of the Act and classifying receipts thereon as professional receipts so as to make assessee eligible for getting its accounts audited u/s.44AB This becomes debatable issue. Hence, the bonafide plea of the assessee coupled with different interpretation given by the Revenue thereby making the issue debatable, would constitute reasonable cause within the meaning of S ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hat since the gross receipts of the assessee engaged in profession had exceeded ₹ 25,00,000/- as per Section 44AA(1) of the Act, Management Consultancy also falls under the said Section and accordingly, the assessee ought to have got its accounts tax audited u/s.44AB of the Act and failure of which would result in levy of penalty u/s.271B of the Act. The assessee pleaded vehemently that he has not rendered any professional services instead, he is engaged in the business of rendering Management Consultancy Services and accordingly, the eligibility for getting the accounts audited would arise only in the event of gross receipts exceeding ₹ 1 Crore as assessee is only engaged in the business of rendering Management Consultancy se ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the receipts from rendering Management Consultancy Services would be treated as business receipt or professional receipt so as to determine the applicability of provisions of Section 44AA r.w.s. 44AB of the Act for the year under consideration. We find that the expression Management Consultancy does not form part of various professions mentioned in Section 44AA of the Act. For the sake of convenience, the provisions of Section 44AA(1) are reproduced hereunder:- (1) Every person carrying on legal, medical, engineering or architectural profession or the profession of accountancy or technical consultancy or interior decoration or any other profession as is notified by the Board in the Official Gazette shall keep and maintain such books ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
