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2020 (9) TMI 233 - AT - Income TaxPenalty u/s 271 (1) (c) - Defective notice - non recording of proper satisfaction in terms of provisions of Section 271 (1) ( C ) - assessee submitted none of the twin charges has been struck off - filing revised computation of income - HELD THAT:- Such penalty cannot be sustained in view of the decision of Sahara India Life Insurance Co Ltd . [2019 (8) TMI 409 - DELHI HIGH COURT] wherein cancelled the penalty as none of twin charges were struck off in notice u/s 274 of the Act. Therefore respectfully following the decision of the honourable jurisdictional High Court, we do not find any reason to sustain the penalty. Accordingly, reversing the order of the lower authorities, we delete the penalty imposed u/s 271 (1) ( c) - Additional grounds raised by the assessee are allowed. Penalty u/s 271B - Failure to get the books of accounts audited as required u/s 44AB - appellant is carrying on two different businesses in his individual capacity, one is trading in footwear and other is trading of clothes and in the return of income assessee did not disclose, profit of cloth business - HELD THAT:- There is no dispute with respect to disclosure of profit of footwear business and audit of books of accounts of that business. Assessee when confronted was found to have not disclosed profit from cloth business. In assessment proceedings assessee submitted computation of profit of cloth business, paid tax thereon and it appears submitted tax audit report of that business also. The tax audit report is dated prior to the due date of filing of the return for assessment year 2012 – 13. The notification issued by the Central Board Of Direct Taxes dated first may 2013 clearly states that the assessee was required to file audit report along with the income tax return form assessment year 2013 – 14 onwards. Assessee may have a view that prior to the date he was not required to file the audit report along with the return of income but obtain tax audit report prior to due date of filing of ROI.Therefore, it cannot be said that assessee did not have a "reasonable cause" for not filing tax audit report along with the return of income. Lower authorities are not justified in confirming the penalty u/s 271B - Decided in favour of assessee.
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