Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2016 (6) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2016 (6) TMI 55 - AT - Income TaxPenalty u/s 271B - failure to get accounts audited u/s 44AB - Held that:- We find force in the arguments of the assessee for the reason that the requirement of audit u/s 44AB of the Act applies, when the turnover as per the books of accounts exceeds ₹ 40 lakhs. In the present case on hand, on perusal of the facts available on record, we find that the total turnover as per books of accounts of the assessee is less than ₹ 40 lakhs. Therefore the A.O. was not correct in levying the penalty u/s 271B of the Act. The CIT(A) without appreciating the facts properly, confirmed the penalty levied by the A.O. Therefore, we set aside the order passed by the CIT(A) and direct the A.O. to delete the penalty levied u/s 271B of the Act. - Decided in favour of assessee Penalty u/s 271(1)(c) - addition made on estimation basis - Held that:- No penalty can be levied for concealment of income u/s 271(1)(c) of the Act when additions are made on estimation basis. In the present case on hand, the A.O. has estimated the gross profit on unaccounted turnover and also made additions towards unexplained investments in building on estimation basis. The assessee has admitted the additional income during the course of survey proceedings and paid the taxes. The assessee also explained the reasons before the A.O. and requested for immunity from the penalty proceedings. Therefore, when the addition is made on estimation basis and assessee has admitted the additional income to buy peace and to cooperate with the department for smooth completion of the assessment proceedings, the A.O. was not correct in levy of penalty u/s 271(1)(c) of the Act. The CIT(A) without appreciating the facts, confirmed the penalty levied by the A.O. and also enhanced the penalty in respect of unexplained investments in the building. Therefore, we set aside the order passed by the CIT(A) and direct the A.O. to delete the penalty levied u/s 271(1)(c) of the Act. - Decided in favour of assessee
|