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2020 (1) TMI 814 - AT - Income TaxPenalty u/s 271B - failure to get books of accounts audited u/s. 44AB - assessee did not maintain her books account as well as not got the books of account audited as per the provision of section 44AB - HELD THAT:- As during the course of assessment proceedings assessee prepared her books of account and got audited from accountant under the provision of section 44AB. The books of accounts, which were subsequently audited, prepared by the assessee during the assessment proceedings were accepted by the AO therefore no penalty was levied under section 271A AO levied the penalty for not furnishing the audited report in form 3CD in time under section 271B. Never the less, it is important to note that admittedly there was the loss from the transactions of purchase and sale of shares and there was the substantial compliance on the part of the assessee for getting the accounts audited. More so, the plea of the assessee that her son has carried out the sale purchase transaction of shares has not been proved wrong. It is also important to note that there was no infirmity in such report was pointed out by the AO. Therefore, assessee under the bonafide belief failed to get the accounts audited and in such facts and circumstances the penalty under section 271B is not warranted. With the above observations, the orders of lower authorities are set aside and the penalty levied u/s 271B is deleted. - Decided in favour of assessee.
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