2013 (11) TMI 1670

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..... ls) erred in confirming penalty of Rs. 1,00,000/- under section 271B of the Income Tax Act, 1961 without considering the facts of the case. Provisions of the Act ought to have been properly construed and regard being had to facts of the case, no such penalty should have been levied. Reasons assigned by him are wrong, totally unreasonable and illogical to justify the penalty of Rs. 1,00,000/- levied by him. The said penalty is bad in law.   2. The learned Commissioner of Income Tax (Appeals) erred in arriving at the conclusion of confirming penalty without considering the facts and submission made before him during the appellate proceedings. 3. The learned Commissioner of Income Tax (Appeals) erred in rejecting the explanation of reas .....

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..... rovisions of section 44AB are applicable only in case where total turnover or the gross receipts as per books of accounts exceeded Rs. 40 lakhs. In their case, the total sales or the gross receipts did not exceed Rs. 40 lakhs, therefore, the provisions of section 44AB were not applicable. According to the assessee firm, the income of Rs. 2,09,57,320/- disclosed at the time of survey was not credited in the books of account before 31/10/2006 and therefore the same could not be considered for the purpose of section 44AB as gross turnover or gross receipts. According to the assessee firm, the income pertaining to this year has been credited in the books of accounts on the date of survey on account of additional income declared. This income has .....

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..... by that date such audit in the prescribed form duly signed and verified by such accountant and setting forth such particulars as may be prescribed. According to assessee, income pertaining to this had been credited in Profit and Loss Account after survey on account of declaration of additional income. This income has been credited much later after specified date of audit and under no circumstances, assessee could have got books of accounts audited by 31.10.2006. Assessee could not anticipate on specified date that turnover of the assessee exceeded Rs. 40 lakhs. The assessee at the relevant point of time was prevented by reasonable cause for not getting its accounts audited as per provisions of section 44AB. He was under the bonafide belief .....

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