9911796707
TMI Blog2023 (6) TMI 272X X X X Extracts X X X X X X X X Extracts X X X X ..... ct"), dated 19.04.2018 for AY 2015-16. 2. Assessee is in appeal before the Tribunal against the order passed u/s. 271B of the Act imposing penalty of Rs.1,50,000/- for failure to get accounts audited and to furnish a report of such audit as required u/s. 44AB of the Act. 3. Brief facts of the case are that assessee is in the business of retail dealings in building material on commission basis. Assessee filed his return of income on 14.09.2015, reporting total income of Rs.2,60,678/-. During the course of assessment, Ld. AO noted that assessee has done share transactions through broker Kripa Securities Pvt. Ltd. in which assessee had suffered a loss of Rs.4,38,446/-. Ld. AO noted that assessee entered into intra-day share trading and suffe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the assessee reiterated the submissions made before the authorities below. An affidavit dated 10.02.2023 is also placed on record deposing the facts and circumstances of the case which led to the failure on the part of the assessee to get the accounts audited and furnish a report of such audit. Ld. Counsel further submitted that delay in preparing the audit report occurred since impugned year is the first year where the turnover of the assessee exceeded Rs. 1 Cr. on share dealings for which the assessee was not aware of, to get the accounts audited u/s. 44AB of the Act. Assessee got the accounts audited u/s. 44AB and obtained the audit report for the same. Ld. Counsel emphasized that assessee was under this bona fide belief owing to the fac ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ld prescribed u/s. 44AB of the Act and was under a bonafide belief that there was no requirement of any audit in this respect. Subsequently, assessee got the accounts audited in respect of his share transaction and obtained the report as required u/s. 44AB of the Act. Further, assessee has furnished an affidavit to state that he was not in the knowledge of the share transactions in his name as the same was done by his broker. Considering the facts and circumstances of the case and explanation offered by the assessee which constitutes a reasonable cause as envisaged u/s. 273B of the Act, we hold that impugned penalty is not sustainable and is hereby deleted. Grounds taken by the assessee are allowed. 7. In the result, appeal of the assessee ..... X X X X Extracts X X X X X X X X Extracts X X X X
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