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2020 (2) TMI 77 - AT - Income TaxPenalty u/s 271B - failure of getting the books of accounts audited u/s 44AB - HELD THAT: -There is a reasonable cause on the part of the assessee in not getting the books of accounts audited since it adopted the percentage completion method and that the advance received from customers is not part of turnover but in the shape of liability which can be crystallized to the sale turnover only when the project is completed and the possession is handed over along with registered sale deed to the customer. Therefore in our view the assessee succeeds on two counts firstly that it was not required to get books of accounts audited and if for sake of discussion if the alleged advance received from customers is presumed to be turnover then also the assessee will succeed on account of Section 273B of the Act which provides for “penalty not to be imposed in certain cases” where the assessee proves that there was a reasonable cause for the said failure and thus covers the situation of the assessee too. We, thus delete the penalty levied u/s 271B of the Act at ₹ 1,50,000/- each for Assessment Year 2010-11 to 2012-13 and allow all three appeals raised by the assessee.
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