9911796707
TMI Blog2021 (12) TMI 504X X X X Extracts X X X X X X X X Extracts X X X X ..... he delay occurred because the counsel of the assessee did not intimate the passing of the impugned order. Ld. DR opposed to the condonation. We however in the larger inteterst of justice are satisfied with the reasonable cause stated in the affidavit requesting for condonation of delay, and accordingly condone the delay of 39 days and admit this appeal for adjudication on merit. 3. The assessee has raised the following grounds of appeal: "1. That the Ld. CIT(A), Bathinda erred on facts and law in confirming the penalty imposed by the AO at Rs. 42,000/- u/s 271B of the IT Act, 1961 without considering the contentions of the assessee raised during the course of appellate proceedings. 2. That the Ld. CIT(A), Bathinda erred on facts and la ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 39(3) of the Act. Further Ld. AO held the gross receipt of Rs. 8358158/- as business receipts and the assessee was required to get its account audited u/s 44AB of the Act and since the assessee has failed to do so penalty proceedings u/s 271B of the Act were initiated by the Ld. AO. Subsequently vide order dated 27.02.2019 penalty of Rs. 42,000/- was levied at the rate of 0.5 per cent of the alleged gross business receipts. 5. The assessee challenged the levy of penalty u/s 271B before Ld. CIT(A) but failed to succeed as Ld. CIT(A) confirmed the view taken by the Ld. Assessing Officer as the assessee failed to furnish necessary documents to prove that it is covered u/s 10(23C)(iiiad) of the Act. 6. Aggrieved the assessee is now in appeal ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... count audited u/s 44AB of the Act. We note that the assessee is a college run by a society namely Khalsa Diwan Education & Welfare Society, Bathinda. It is also stated that an indemnity bond was filed by the society with the Punjabi University, Patiala for getting affiliation of course in the college run by the society. Also on perusal of the income and expenditure account of Guru Nanak Dev Khalsa Girls College placed at page 18 of the paper book dated 01.12.2021 we find that the gross receipts mainly includes the fees received from college students for various educational courses imparted by the college. Prima facie the particulars of income and expenditure account looks to be from the activity not in the nature of any business or commerce ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ssion and whose total sales, turnover or gross receipts, exceeds Rs. 40 lakhs have to get their accounts audited by an accountant before the specified date as prescribed. That no tax shall be levied or collected except by authority of law. The legal basis for levy of income tax is given in section 4 of the Act, which is in respect of the total income defined under section 2(45) of the Act, which is computed as per section 5 of the Act, in the manner laid down in the Act. Chapter IV of the Act provides for "computation of total income" and section 44AB is only one of the sections enacted under Chapter IV-D dealing with computation of profits and gains of business or profession. Section 44AB becomes operative when there is computation of prof ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... circumstances of the case. Therefore, the AO is not justified in levying penalty on the assessee. The order of the Ld. CIT(A) is accordingly reversed. 6.2. The arguments of the assessee before the ld. CIT(A) and before us are also taken into consideration. The assessee under bonafide belief that the provisions of section 44AB are not attracted and therefore, in the facts and circumstances of the present case, no penalty can be imposed when the assessee had acted deliberately. The reliance has been placed on the following case laws: i) Hindustan Steel Ltd. vs. State of Orissa 83 ITR 26(SC) ii) ITO vs. Nanak Singh Guliani 171 CTR 195 (MP) iii) CIT vs. Abhyeshwar 153 CTR 372 (MP) iv) CIT vs. Tea King (2000) 158 CTR 413 (Guj) v) R. ..... X X X X Extracts X X X X X X X X Extracts X X X X
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