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2019 (9) TMI 911 - AT - Income TaxLevy of penalty u/s 271B - Books of accounts not audited - bonafide belief - addition the turnover of the assessee has increased the prescribed limit of ₹ 1.00 Crore applicable for the assessment year 2014-15 - HELD THAT:- Assessee was under the bonafide belief that the Books of accounts need not be audited and filed the Return of income. We find the explanations of the Ld.AR are realistic and duly supported with the financial statements which cannot be over looked. Further, the assessee is Regular in filing the Return of income and has been paying the taxes. The Reasonable cause explained by the assessee u/s 273B of the IT Act, that the assessee has maintained Books of accounts and based on Books of accounts, income and expenditure has been prepared and filed the return of income. In the Assessment proceedings, the AO found the credits in other Bank accounts which were not disclosed and the assessee has accepted the addition. Assessee has a Reasonable cause and the action of the assessee is not wanton. Considering the facts, circumstances and the legal provisions that the penalty provisions are not automatic and the AO has to weigh the circumstances further on the turnover and demonstrated with financial statements. Accordingly, we set aside the order of CIT(A) and direct the AO to delete the penalty and allow the grounds of appeal of the assessee.
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