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TMI Blog2023 (11) TMI 695X X X X Extracts X X X X X X X X Extracts X X X X ..... on in the penalty proceedings stating the delay for getting the books audited for want of letter from Buldhana Urban Credit Co-op. Society, Buldhana and the books were audited immediately after the letter received from the said society. Further, books were audited on 01-02-2010 and were available for examination during the assessment proceedings which was completed on 20-12-2011 u/s. 143(3) of the Act. Therefore, it was a mere technical breach as the books were not audited before specified time as provided by the statute, in our opinion that the delay as explained by the assessee flows from bonafide belief and no penalty could be imposed for a mere technical or venial breach of the provisions of the Act. Thus, penalty imposed by the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... at the assessee is a firm and civil contractor. According to the AO, the assessee has shown gross receipt of Rs. 36.33 crores and liable to be audited the books of account u/s. 44AB of the Act. The AO initiated penalty proceedings for not getting the books of account audited as per requirement of law. The assessee submitted its reply which is reproduced by the AO at page 2 of the penalty order. On perusal of the same, we note that the assessee had undertaken the job of toll collections from Buldhana Urban Credit Co-op. Society, Buldhana and the toll collection fixed for Rs. 1,55,000/- per day. As the said toll collection went into losses, the assessee made an application to Buldhana Urban Credit Co-op. Society, Buldhana for its consideratio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... es audit of books, if turnover or gross receipts exceeds Rs. 45 lacs. As discussed above, the assessee has shown gross receipt as Rs. 36.33 crores, the provisions u/s. 44AB are applicable to the facts of the case. The Hon ble Supreme Court in the case of Hindustan Steel Ltd. (supra) held the liability to pay penalty does not arise merely upon proof of default and that penalty cannot be imposed unless the party obliged either acted deliberately in defiance of law or was guilty of conduct contumacious or dishonest, or acted in conscious disregard of its obligation. In the present case, the assessee offered its explanation in the penalty proceedings stating the delay for getting the books audited for want of letter from Buldhana Urban Credit C ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... unt of Rs. 11,15,462/-. Before the CIT(A), it is noted that the assessee submitted details of four contractors with PAN and Aadhar and Election Card. Considering the same allowed the expenditure to an extent of Rs. 6,59,992/- and confirmed the addition of Rs. 4,55,470/- (Rs.11,15,462/- - Rs. 6,59,992/-). Before us, no evidence whatsoever furnished in support of remaining four sub-contractors regarding identity, ledger, PAN and Aadhar Card. Therefore, we find no infirmity in the order of CIT(A) and it is justified. Thus, the grounds raised by the assessee are dismissed. 11. In the result, the appeal of assessee is dismissed. 12. To sum up, the appeal of assessee in ITA No. 464/NAG/2016 is allowed and appeal in ITA No. 468/NAG/2016 is d ..... X X X X Extracts X X X X X X X X Extracts X X X X
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