TMI Blog2022 (1) TMI 884X X X X Extracts X X X X X X X X Extracts X X X X ..... ed u/s. 44AB, is covered u/s. 273B, which, in turn, prescribes that no penalty shall be imposed if reasonable cause for the failure is established. We are confronted with a case of a Cooperative Society dealing with small farmers having turnover of less than ₹ 1.00 crore with the exclusion of the amount of grant-in-aid. The very fact that the assessee got its accounts audited under the Cooperative Societies Act prima facie shows that it entertained a bona fide belief that the amount of grant-in-aid received from Government of Maharashtra was not includible for the purposes of computing turnover u/s. 44AB. Had it been otherwise, it would have got the accounts audited u/s. 44AB apart from the auditing for the purposes of Cooperative ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e has approached the Tribunal. 3. We have heard the ld. DR through Virtual Court and gone through the relevant material on record. There is no appearance from the side of the assessee despite notice. As such, we are proceedings to dispose of the appeal ex parte qua the assessee. It is seen that the assessee is primarily engaged in the business of purchasing milk from its members and sale of the same. The assessee has also been engaged in running a fodder camp aided by the Maharashtra State Government for the cattle of drought hit farmers. It received grant of ₹ 81.38 lakh from the Government of Maharashtra and the turnover of milk and cattle feed stood at ₹ 84.34 lakh. The assessee did not get the accounted audited u/s. 44AB ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 0 crore. This shows that if the amount of grant-in-aid is excluded, the regular turnover of the assessee was only below the stipulated limit. It is undisputed that the assessee got its accounts audited under the Cooperative Societies Act and also furnished such report to the AO as well as the Registrar of Cooperative Societies. The fact that the amount received from Government of Maharashtra was chargeable to tax, against which the assessee incurred expenses is relevant only for determining the taxability or otherwise of the amount. It is further relevant to accentuate that section 271B requiring imposition of penalty for failure to get the accounts audited u/s. 44AB, is covered u/s. 273B, which, in turn, prescribes that no penalty shall be ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
