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2014 (5) TMI 693 - AT - Income TaxFailure to audit accounts u/s 44AB – Payment received exceeded monetary limit – Held that:- Assessee contended that he was acting as an agent and had arranged the trucks owned by others on hire for his principal and the receipts which was received by him was received in a fiduciary capacity which did not belong to him and were paid by him and he had only retained his commission – the contentions of the assessee, prima facie, appears of be bonafide and the Revenue has not brought any material on record to support that the belief of the Assessee was not bonafide - CBDT vide Circular No 452 dated 17.3.1986 regarding the applicability of section 44AB in the cases of commission agents, arhatias etc has clarified that in the case of agent whose position is similar to that of Kuccha Arhatia, the turnover is only the commission and does not include the sales on behalf of the Principals. Penalty u/s 271B of the Act – Held that:- The AO is vested with discretion to levy the penalty - when there is technical or venial breach of the provisions of law, the ends of justice require that discretion should not be exercised in favour of punishing a minor default – Relying Hindustan Steel Ltd. Vs State of Orissa [1969 (8) TMI 31 - SUPREME Court] - no penalty u/s 271B of the Act was imposable - Decided in favour of Assessee.
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