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TMI Blog2023 (9) TMI 611X X X X Extracts X X X X X X X X Extracts X X X X ..... of appeal submitted by the assesee are as under: - 1. That under the facts and the law, the learned CIT (Appeals), NFAC, Delhi erred in confirming the penalty levied by the learned AO u/s 271B at Rs. 1,50,000/- for not getting the audit u/s 44AB, though, the appellant is a Charitable Trust and income is not taxable and provisions of section 44AB for getting Audit u/s 44AB are not applicable to charitable institutions. Prayed to delete the penalty. 2. That under the facts and the law, the learned CIT (Appeals), NFAC, Delhi erred in confirming the levy of penalty u/s 271 B at Rs. 1,50,000/- by the learned AO for the reason that addition of Rs. 8,00,000/- (added Rs. 10 lakh, subsequently rectified to Rs. 8 lakh) is not from education but ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... orld School" which is situated in Lolesara district Bemtara, Chhattisgarh. Return of income was e-filed on 15.03.2018 for the relevant AY 2017-18. For the year under consideration assessee society has a receipt of Rs. 12,13,08,840/-, therefore it was the view of the Ld AO that assessee is liable for Tax Audit u/s 44AB. During the assessment proceedings assessee submitted that it is a educational institution running a CBSE Affiliated school since inception and imparting education is an activity for charitable purpose under section 2(15) of the Act therefore provision of section 44AB which relates to persons carrying on Business will not be apply in assessee's case. Therefore, no penalty u/s 271B will be initiated and levied on the assessee. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... since the assessee was involved in educational activities, having involved in no other activities. It was the submission that under such a situation provisions of section 44AB cannot be applied in the case of assessee, thus, the penalty imposed u/s 271B was bad in law and subject to deletion. 6. Ld Sr Dr on the other hand strongly supported the order of revenue authorities. 7. We have considered the rival submissions, perused the material available on record and orders of the authorities below. Assessee's contention that the assessee is an educational institution since beginning. This contention of the assessee is fortified by the documents like registration of the assessee under registrar of societies, Chhatisgarh and registration with ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... levant year thus such audit was not conducted. Under such circumstances, we agree with the observations of Ld CIT(A) that the addition of Rs. 10.00 Lac made by the Ld AO u/s 37(1) was accepted by the appellant, thus, also accepted the fact that the assessee has income from business and profession. Moreover, to fit into the definition of 'Charitable purpose' as per section 2(15) of the Act, the appellant was required to fulfill certain prescribed conditions. The appellant was failed in establishing during the penalty proceedings before AO, as well as before the Ld CIT(A). We therefore are of the considered opinion that Ld CIT(A) had correctly appreciated the facts of the case in confirming the penalty imposed by the Ld AO u/s 44AB. Since, we ..... X X X X Extracts X X X X X X X X Extracts X X X X
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