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2015 (10) TMI 923 - AT - Income TaxPenalty u/s.271B - Failure to get accounts audited - Held that:- Considering the accounting of the assessee the claim of the assessee was not approved, however as far as the question of levy of penalty for non auditing of account being gross receipts have exceeded ₹ 40 lacs, we have noted that some of the commission income pertained to A.Y.2003-04 and part of the income pertained to A.Y. 2004-05 and likewise another part of the income belonged to A.Y. 2005-06. This position of segregation of income for respective years was finally settled by the Respected Co-ordinate Bench. Therefore, the argument before us was that the assessee was under a bona fide belief that the commission income for the year under consideration was less than ₹ 40 lacs; hence under that impression he has not obtained the audited accounts. On the question of bona fide of tax payers, viz-a-viz, the provision of Section 271B of IT Act a decision of Hon’ble Gujarat High Court has been cited in the case of ITO Vs. Sachinam Trust(2009 (3) TMI 186 - HIGH COURT OF GUJARAT ). Respectfully following this decision, we hereby hold that in view of the provisions of Section 273B of IT Act the assessee was prevented by a reasonable cause; hence the penalty levied u/s. 271B deserves to be deleted. - Decided in favour of assessee. Penalty u/s. 271(1)(c) - Non deduction of TDS on commission - Held that:- We are of the considered opinion that in a situation when the commission income was subject to TDS and that commission income was disclosed in the respective years following one method of accounting which was not accepted and taxed in A.Y.2004-05 on the basis of another system of accounting; then it is not fair to hold that the assessee has deliberately concealed the facts of the income for the year under consideration. For this legal proposition, we hereby place reliance upon the decision of Hon’ble Supreme Court pronounced in the case of Reliance Petro Product Pvt. Ltd., reported in (2010 (3) TMI 80 - SUPREME COURT) and reverse the findings of learned CIT(A). We hereby direct to delete the penalty.- Decided in favour of assessee.
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