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2021 (8) TMI 648 - AT - Income TaxLevy of penalty u/s. 271B - no accounts tax audited u/s.44AB - debatable issue - Whether the expression “Management Consultancy” could not be brought within the ambit of “technical consultancy”? - HELD THAT:- The expression “Technical Consultancy” would only mean rendering of technical services by assessee. In our considered opinion, the expression “Management Consultancy” could not be brought within the ambit of “technical consultancy”. Hence, we hold that the provisions of Section 44AA(1) of the Act cannot be made applicable to the assessee in the instant case. Hence, assessee is not liable for getting its accounts tax audited u/s.44AB - the assessee had entertained the bonafide plea that the receipts earned by him for rendering Management Consultancy Services is only a business receipt and not professional receipt. This bonafide plea of the assessee has not been doubted by the Revenue but the Revenue had only tried to take different stand by giving different interpretation to the provisions of Section 44AA of the Act and classifying receipts thereon as professional receipts so as to make assessee eligible for getting its accounts audited u/s.44AB This becomes debatable issue. Hence, the bonafide plea of the assessee coupled with different interpretation given by the Revenue thereby making the issue debatable, would constitute reasonable cause within the meaning of Section 273B of the Act and hence in any case, the assessee would be protected by the immunity provided in Section 273B of the Act. Accordingly, no penalty u/s.271B of the Act could be levied - Decided in favour of assessee.
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