TMI Blog2013 (10) TMI 649X X X X Extracts X X X X X X X X Extracts X X X X ..... essee during the year under considering worked out at Rs. 19,61,77,419/- - As a turnover in the case exceeded Rs. 40 lacs, the assessee was required to get its accounts audited as per the provisions of Section 44AB of the Act. Since the assessee failed to comply with the said provisions, proceedings for imposing of penalty under Section 271B of the Act was initiated - Section 12AA of the Act did not exempt any entity from getting the accounts audited if its gross taxable receipts exceed the limit prescribed under Section 44AB of the Act – Decided against the Assessee. - I.T.A. No. 412(Asr)/2013, I.T.A. No. 413(Asr)/2013 - - - Dated:- 15-10-2013 - Sh. H. S. Sidhu And Sh. B. P. Jain,JJ. For the Appellant : Sh. K. R. Jain, Advocate ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ection 11(1)(a) of the Act to claim exemption of its income. However, the assessee has shown the application of income, as per income and expenditure account to the tune of Rs. 4,16,51,317/- which works out to 21.23% of the total receipts at Rs. 19,61,77,419/-. Thus, the balance receipts at Rs. 12,51,02,340/- are obviously taxable receipts. These taxable receipts are assessable as receipts from business. As the taxable receipts are above 40 lacs, the assessee was required to get its accounts audited as per the provisions of Section 44AB of the Act. ii. The Assessing Officer given opportunity to the assessee to explain as to why penalty under Section 271B of the Act may not be imposed. In response to the same, it was stated that the assess ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tition No. 1151 of 2013(O M), Improvement Trust Vs. Commissioner of Income Tax, Bathinda Others, the present cases came up for hearing before this Bench on 14.10.2013 and Sh. K.R. Jain, Advocate, appeared for the assessee and stated that he has received notice of hearing for the present appeals on 10th October, 2013 and necessary communication to this effect has been sent to the assessee-trust on 11th October, 2013 but he has not received any instruction from the assessee so far. Therefore, he requested for adjournment. But keeping in view the direction given by the Hon'ble High Court, we are unable to adjourn the matter being a time- bound matter. Accordingly, we reject the request of learned counsel for the assessee for adjournment and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ate Authority has upheld the same by not accepting the explanation filed by the assessee because Section 12AA of the Act did not exempt any entity from getting the accounts audited if its gross taxable receipts exceed the limit prescribed under Section 44AB of the Act. 8) It is pertinent to mention here that this Bench, vide order dated 18.12.2012 has also dismissed the appeal i.e. I.T.A. No. 366(Asr)/2012 filed by the assessee for grant of registration under Section 12AA of the Act, which was filed against the order of refusal passed by CIT, Bathinda, for granting of registration under Section 12AA of the Act. This Bench has held that the assessee trust was involved in carrying on various activities which are in the nature of trade, comm ..... X X X X Extracts X X X X X X X X Extracts X X X X
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