TMI Blog2012 (7) TMI 648X X X X Extracts X X X X X X X X Extracts X X X X ..... mply with the provisions of sec 44AB - assessee is entitled for the benefit of sec. 273B - in favour of assessee. - ITA No. 3537/Mum/2011 - - - Dated:- 25-5-2012 - SHRI R S SYAL, SHRI VIJAY PAL RAO, JJ. Assessee by Sh KGopal/Sh Jitendra Singh Revenue by Sh V Saxena ORDER PER VIJAY PAL RAO, JM This appeal by the assessee is directed against the order dated 3.2.2011 of the Commissioner of Income Tax(Appeals) arising from the penalty order passed u/s 271B of the I T Act for the Assessment Year 2007-08. 2 The assessee has raised the only effective ground in this appeal as under: The Commissioner of Income Tax(Appeals) erred in confirming the order ofg the Assessing Officer of levying the penalty u/s 271B o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... filing the tax audit report. 3.2 On appeal, the Commissioner of Income Tax(Appeals) has concurred with the view of the Assessing Officer and dismissed the appeal of the assessee. 4 Before us, the ld AR of the assessee reiterated the contentions as made before the lower authorities and submitted that the assessee is an individual and has studied upto school level. He has further submitted that till the assessment year under consideration, the assessee was engaged in the business of broking in the chemical market. During the year under consideration, the assessee for the first time started in trading in shares. Due to lack of knowledge and in the absence of the advice of a qualified accountant, the assessee was under bonafide impression th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... de belief, the assessee could not get its accounts audited u/s 44AB. The assessee has under the impression that the income credited to P L account is only Rs. 33.33 lacs; therefore, the tax audit report was not required to be filed by the assessee. The authorities below did not consider the explanation of the assessee as sufficient. Section 271B contemplates the payments by way of penalty in case any person fails to get its account audited as per sec 44AB of the Act . We quote sec 271B as under: 271B. If any person fails to get his accounts audited in respect of any previous year or years relevant to an assessment year or 43[furnish a report of such audit as required under section 44AB, the Assessing Officer may direct that such person ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ion 272B or] 64[sub-section (1) 65[or subsection (1A)] of section 272BB or] 66[sub-section (1) of section 272BBB or] clause (b) of sub-section (1) or clause (b) or clause (c) of sub-section (2) of section 273, no penalty shall be imposable on the person or the assessee, as the case may be, for any failure referred to in the said provisions if he proves that there was reasonable cause67 for the said failure.] 6.2 Section 273B begins with non-obstante clause and provides that no penalty shall be levied if the assessee proves that there was a reasonable cause for the failure on his part in compliance with the provisions of the Act. There is no dispute regarding the fact that this is the first year during which the assessee carried out the s ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
