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2023 (8) TMI 713 - ITAT RAIPURPenalty u/s 271B - non-compliance of getting accounts audited u/s. 44AB - HELD THAT:- As respectfully following the decision of Exque Finmark Pvt. Ltd. [2015 (10) TMI 1386 - ITAT MUMBAI] followed by SHREE BALAJI CONSTRUCTION [2020 (2) TMI 77 - ITAT INDORE] wherein judgment of Hon’ble Apex court in the case of Hindustan Steel Ltd. [1969 (8) TMI 31 - SUPREME COURT] was quoted “a penalty, even where the provision stands attracted, may lawfully be not levied where the default is not found to be a result of a conscious disregard by the tax payer of his legal obligations or a conduct contumacious,”. Ostensibly, the assessee was under bona fide belief that the advance are not turnover, which was a right contention, according to project completion method of accounting. No deliberate act or defiance of law or guilty conduct was observed by either of the revenue authority neither the revenue has produced any such evidence or decision contrary to what is transpired by the submission of the assessee and its reliance on the case laws. The case of the assessee AOP is covered by decisions in the judgements referred, thus, under identical circumstances in the instant case, we are of the considered opinion that penalty imposed by the Ld AR and confirmed by the Ld CIT(A) is liable to be deleted and we direct to do so. Appeal of the assessee is allowed.
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