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2018 (11) TMI 211

see had not only income from plying of the six trucks but was also doing business of hiring trucks from which the assessee also earned business commission income and that is why the gross receipts of the assessee has exceeded ₹ 1 crore. Since the gross receipts of the assessee have admittedly exceed ₹ 1 crore, therefore, provisions of Section 44AB(a) clearly apply in the case of the assessee. The other provisions contained u/s 44AB(b,c,d) would not apply in the case of the assessee. Since the assessee failed to get the accounts audited as per Section 44AB(a) of the Act, therefore, assessee is liable for penalty u/s 271B of the Act. The assessee did not make out any case of reasonable cause so as to claim immunity from the penalt .....

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sked to explain as to why the total gross receipts appearing in Form 26AS traces may not be treated as his gross receipt for the assessment year under appeal. The assessee filed the reply dated 16.12.2016 (PB 4) in which the assessee explained that as per past history of the assessee, the net profit in all the years varies between 4% to 4.5% of the gross receipts. Thus, to buy peace, assessee offered that a net income calculated @ 4.5% of the gross receipts may be assessed as taxable income of the assessee. The AO accordingly, calculated net income @ 4.5% of the total receipts which comes to ₹ 13,30,126/-. Since assessee had already declared income of ₹ 2,60,000/-, therefore, addition of ₹ 10,70,126/- was made to the retur .....

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et the accounts audited. On the other hand, Ld. DR relied upon the orders of the authorities below. 5.1 Section 271B of the Act provides 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 [furnish a report of such audit as required under section 44AB], the Assessing Officer may direct that such personal shall pay, by way of penalty, a sum equal to one-half per cent of the total sales, turnover or gross receipts, as the case may be, in business, or of the gross receipts in profession, in such previous year or years or a sum of [one hundred fifty thousand rupees], whichever is less. 5.2 Section 44AB of the Act provides every person - (a) Carrying on busine .....

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0/-. The assessee further declared income from other sources in a sum of ₹ 36,000/- as commission income from booking of trucks. The reply of the assessee and computation of income clearly show that apart from assessee earning business income through six trucks was also doing his business activity through hiring of the vehicles on which commission income was earned. The Ld. CIT(A), therefore, correctly held that the turnover of the assessee because of this business activity has reached to ₹ 2.95 crores. Thus, the assessee did not declare correct income in the return of income and that the assessee had not only income from plying of the six trucks but was also doing business of hiring trucks from which the assessee also earned bu .....

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