2023 (9) TMI 611 - ITAT RAIPUR

Penalty levied u/s 271B - not getting the audit u/s 44AB - appellant is a Charitable Trust - HELD THAT:- During the hearing before us when it was queried whether the assessee which has receipt of more than Rs. 12.00 crores whether the assessee has got its accounts audited under the provisions of income tax act applicable on charitable organization and report in form 10B was furnished, Ld AR answered that the assessee was not having 12AA for the relevant year thus such audit was not conducted.

We agree with the observations of Ld CIT(A) that the addition made by the Ld AO u/s 37(1) was accepted by the appellant, thus, also accepted the fact that the assessee has income from business and profession. Moreover, to fit into the definition of ‘Charitable purpose’ as per section 2(15) of the Act, the appellant was required to fulfill certain prescribed conditions.

The appellant was failed in establishing during the penalty proceedings before AO, as well as before the Ld CIT(A). We therefore are of the considered opinion that Ld CIT(A) had correctly appreciated the facts of the case in confirming the penalty imposed by the Ld AO u/s 44AB.

We uphold the order of Ld CIT(A), in terms of our observations herein above. Thus, ground of the assessee on the sole issue pertaining to levy of penalty u/s 271B are dismissed.