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2018 (2) TMI 102 - AT - Income TaxPenalty proceedings u/s 271B - assessee has failed to get its accounts audited under the provisions contained u/s 44AB - bonafide belief of assessee as claimed the exemption u/s 11 - Held that:- Bare perusal of the provisions contained u/s 44AB of the Act goes to prove that the same are applicable to the person carrying on business or profession and is required to get its account mandatorily audited by an accountant. But, in the instant case, when assessee is undisputedly a charitable society and is not carrying out any business and has been claiming exemption u/s 11A of the Act, the penalty u/s 271B of the Act cannot be levied. Furthermore, when there is no computation of profits and gains of the business or profession as part of the total income, the assessee society is not amenable to section 44AB of the Act. No doubt, exemption claimed by the assessee society trust u/s 11A has not been granted by the AO and completed the assessment u/s 143 (3) but it will not burden the assessee to get its account audited with retrospective effect so long as registration u/s 12A of the Act is in operation. - Decided in favour of the assessee.
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