Tax Management India. Com
        A knowledge portal that keeps us updated ...
TMI - Tax Management India. Com
Case Laws Acts / Rules Notifications Circulars Tariff/ ITC HSN Forms Manuals News SMS Articles Highlights
← Previous Next →
  • Contents


User Login
Stay sign in     

Forget password        New User/ Regiser


2016 (8) TMI 858

Head Note / Extract:
Penalty u/s 271B - threshold limit for getting its account audited u/s 44AB - Business activity or professional activity - receipts from the pathological laboratory have to be considered as business receipts - Held that:- Without first holding that the assessee was a professionally qualified medical doctor the Revenue cannot avoid the conclusion that the receipts from the pathological laboratory have to be considered as business receipts, as for earning professional receipts holding of a professional qualification would be sine qua non. The threshold limit for getting accounts audited in the case of business receipts admittedly for the year under consideration have been set by the statute at Rs. one crore.

The occasion for imposing penalty under section 271B did not arise. In such a situation, where the assessee does not hold any professional medical qualification, we do not see how it can be held that the assessee is carrying on a profession as the venture carried on with the help of technically qualified people necessarily would fall in the category of "carrying on business" wherein the statutory threshold for getting accounts audited has been fixed at Rs. one crore. Accordingly, we find that in the facts of the present case, considering the claim of the assessee put forth before the Commissioner of Income-tax (Appeals) stated to have been identically made before the Assessing Officer also, we hold that the penalty under section 271B wherein the gross receipts were only ₹ 42 lakhs.

Accordingly, examining the issue from all angles, we find that in the facts of the present case, the penalty imposed under section 271B deserves to be quashed. As not only on facts, it could not have been imposed but even otherwise considering the explanation of the assessee in the facts of the present case, it should have been quashed on the grounds of reasonable cause. - Decided in favour of assessee


Brief details:

Our database contains Statutory Provisions, Notifications, Circulars / Trade Notices, Forms, Tariff, Schedules etc. and case laws on various topics.

Topics Covered by us: Income Tax, DTAA, Wealth Tax and Other Direct Tax related Provisions, Benami Transactions, Money-Laundering (PMLA), Goods and Services Tax (CGST, IGST, UTGST, SGST, Cess, etc.), Customs, FEMA, SEZ and FTP, Companies Law, Insolvency & Bankruptcy, etc., Finance Acts, Finance Bills and Others and Service Tax, Central Excise, Cenvat Credit, CST etc.

Note: Statutory Provisions, Notifications, Tariff Tables etc. are being updated from time to incorporate latest amendments.

Large number case laws include cases from Supreme Court, High Courts, Tribunals, Advance Rulings Authority related to various laws including, Direct Taxes, Indirect Taxes and corporate laws (including GST cases for all the States) are being updated on daily basis. Forward linking and Backward linking of cases laws (i.e. cited case laws, referred case laws) is also being done for quick reference.

Landmark cases / Importance cases which has been referred in another cases are also being updated on daily basis for quick reference and use.

Additional Features: we also provide subscription free services such as Discussion Forum, Articles, News, Highlights of important update etc.

We strive continuously to provide latest and updated information.

With TMI updates, keep yourself ahead of Peers.

Click here to know about the Packages



← Previous Next →




Discussion Forum
what is new what is new

|| Home || About us || Feedback || Contact us || Disclaimer || Terms of Use || Privacy Policy || TMI Database || Members ||

© [A unit of MS Knowledge Processing Pvt. Ltd.] All rights reserved.