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2014 (11) TMI 1264 - AT - Income TaxPenalty u/s 271B - not maintaining the books of account in respect of investments made - sales of Future and Options had been made by the assessee, which were business receipts but not included and shown by the assessee and no tax audit report had been submitted by the assessee of these business receipts - default u/s 44AB - HELD THAT:- As per section 44AB the assessee is required to get his accounts audited if the particular criteria as prescribed in the section is fulfilled. Once the accounts are audited u/s 44AB, in any view of the matter, merely because a particular item of income has not been included in the said tax audit report, it cannot be held that there was default of not getting the accounts audited. In the present case, admittedly the assessee did not claim loss on share transactions in its return of income on account of bona fide belief that the transactions with India Bulls Securities Ltd. were investment transactions. The assessee was under bona fide belief that it was not in share trading business because his main business was advertising etc., as is evident from the tax audit report. Under such circumstances, we are of the opinion that the penalty is not exigible in the present set of facts. Accordingly, we cancel the penalty levied u/s 271B. - Decided in favour of assessee.
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