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2024 (2) TMI 1433 - AT - Income TaxPenalty u/s 271B - not auditing accounts u/s 44AB - HELD THAT - We note that the assessee has been showing commission income in his books of accounts and this fact has not been doubted by the authorities below. Therefore we are of the view that the assessee was under the bona fides believe that his accounts are not liable to be audited under section 44AB of the Act. We also find that the penalty is not levied automatically under the provision of law. The Authorities Below are empowered to waive the penalty if they find that there was sufficient and reasonable cause for not getting the accounts audited under the provisions of section 44 AB of the Act as per the provision of Section 273B of the Act. The penalty can be waived off if the default was committed by assessee on account of unavoidable circumstances. Accordingly we are of the view that the default has been committed by the assessee inadvertently. Thus we hold that there cannot be penalty under section 44AB of the Act. Accordingly we direct the Assessing Officer to delete the penalty levied u/s 271B of the Act. Hence this ground of appeal of the assessee is allowed.
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