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2009 (2) TMI 207 - KARNATAKA HIGH COURTPenalty u/s 271B – audit report – assessee has tree concerns - but audit report u/s 44AB was obtained only for one concern - For other two business he had not obtained audit reports on the ground that individually from these two businesses, he had not exceeded the total turnover of Rs. 40,00,000/- for the relevant AY, as contemplated u/s 44AB – AO levied the penalty u/s 271B – CIT(A) confirmed the penalty – ITAT deleted the penalty – held that - A bare reading of the provisions of law makes it abundantly clear that the Assessee was required to furnish audit with regard to his business as S. 44AB does not show or contemplate that all business are required to be consolidated together for working out the aggregate of the turnover. - The subsequent clarification issued by the Chartered Accountants of India cannot be pressed into service to the disadvantage of the Assessee - it is clear to us that assessee had acted in bonafide belief and had no dishonest intention in not obtaining audit report for all the three businesses carried on by him – penalty not imposable
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