TMI Blog2004 (10) TMI 311X X X X Extracts X X X X X X X X Extracts X X X X ..... ed to get the accounts audited and such audit report under s. 44AB was to be furnished within the stipulated time. Since the assessee failed to get the accounts audited, hence penalty under s. 271B of Rs. 14,084 was imposed. 3. By the impugned order the CIT(A) confirmed the order of penalty. 4. Mr. Modi, the learned counsel for the assessee, has submitted that the assessee is a manufacturer and seller of liquor. The provisions of s. 44AF are applicable in the case of a retail trader but the assessee being a manufacturer of liquor that provision is not applicable in the case of the assessee. Otherwise, admittedly, the turnover is less than Rs. 40 lakhs, hence there was no obligation on the part of the assessee to get the accounts audited ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... fits and gains of business or profession": Provided that nothing contained in this sub-section shall apply in respect of an assessee whose total turnover exceeds an amount of forty lakh rupees in the previous year. (5) Notwithstanding anything contained in the foregoing provisions of this section, an assessee may claim lower profits and gains than the profits and gains specified in sub-s. (1), if he keeps and maintains such books of account and other documents as required under sub-s. (2) of s. 44AA, and gets his accounts audited and furnishes a report of such audit as required under s. 44AB." 6. On a bare reading of the said provision it is clear that it is a special provision for computing profits and gains of retail traders. The pr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... puting profits and gains of retail trades 25.1 In order to simplify the procedure of computation of income of retail trades, a new scheme for computing profits and gains of such businesses presumptively at five per cent of the gross receipts has been introduced. This scheme is similar to the presumptive scheme of computation of income under s. 44AD or s. 44AE. A new s. 44AF has been inserted in the IT Act. Consequently, Chapter XII-C which provided for a flat tax of Rs. 1,400 for small businesses has been deleted. 25.2 This amendment will take effect from the 1st April, 1998, and will accordingly apply in relation to the asst. yr. 1998-99 and subsequent years." 8. Looking to the circumstances above and as per common parlance a retail ..... X X X X Extracts X X X X X X X X Extracts X X X X
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