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2015 (10) TMI 1436 - AT - Income TaxLevy of penalty u/s 271B - Failure to get accounts audited - Held that:- Income of the Assessee is basically from commission on transportation. The penalty levied u/s 271B is not a blanket penalty but is subject to the control of Sec. 273B. Thus, the Assessee does have the ground to raise the issue of reasonable cause. The Assessee has explained and shown with evidence that the Assessee is accounting only the commission as its income/turnover in its Profit & Loss account. Admittedly, no defect in its books of accounts have been found to show that the Assessee has done any fraudulent activity either. It is also an accepted fact that the ‘Freight payable’ account is separately maintained which contains the details of the ‘Freight payable’ which is received by the Assessee and which is disbursed by the Assessee. This being so, the claim of the Assessee that he was under reasonable and bona fide belief that his turnover did not exceed ₹ 40 lacs is clearly a bona fide claim on which no penalty is leviable u/s 271B. In the circumstances, the penalty levied u/s 271B by the AO, and as confirmed by the ld. CIT(A) stands deleted. - Decided in favour of assessee.
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