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2023 (8) TMI 960 - ITAT RAJKOTPenalty u/s 271B - assessee has not got its books audited u/s 44AB as its business turnover exceeded the limit prescribed - HELD THAT:- In the case of Dr. K. Satish Shetty [2009 (2) TMI 207 - KARNATAKA HIGH COURT] held that since section 44AB as such does not show or contemplate that all businesses are to be consolidated together for working out aggregate of turnover and, on facts, it was clear that assessee had acted in a bona fide belief and had no dishonest intention in not obtaining audit report for all three businesses carried on by him, Tribunal was justified in deleting penalty imposed on assessee. In the case of Nanak Singh Guliani [2001 (9) TMI 23 - MADHYA PRADESH HIGH COURT] the assessee, who was engaged in business of contractor ship, sub-contracted work of substantial amount. The gross receipts attributable to him personally became less than Rs. 40 lakhs. The High Court held that the assessee being under bona fide belief that amount obtained by subcontractor was not to be accounted towards his income, was a reasonable cause for not getting accounts audited under section 44AB. In the case of Staywell Hotels (P.) Ltd. [2005 (3) TMI 47 - MADHYA PRADESH HIGH COURT] held that where delay in filing audit report in Form No. 3CD, was not due to any deliberate intention on part of assessee, nor could its conduct be regarded as contumacious or with a view to evade payment of tax, no case for penalty u/s 271B was made out. Thus we are of the considered view that this is a fit case when penalty under Section 271B of the Act is liable to set-aside. Decided in favour of assessee.
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