9911796707
TMI Blog2023 (9) TMI 799X X X X Extracts X X X X X X X X Extracts X X X X ..... 22. The grounds of the appeal raised by the assessee are as under: "1. That the order of the Ld. Commissioner of Income Tax (Appeals) is arbitrary, bad in law & facts. 2. That the Ld. CIT(Appeals) has erred in law & facts in confirming the levy of penalty U/s 271B imposed by Learned Assessing Officer." 2. The brief facts of the case are that the assessee who is an individual, was engaged in the business of trading of cloth on retail basis, tailoring & stitching. The return of income was filed by the assessee on 06.02.2015 declaring total income of Rs. 1,84,760/-. Subsequently, the return was revised by the assessee on 23.03.2016/- The case was reopened u/s 147 of the Income Tax Act and finalised accepting the return income. During the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... that the assessee has offered its profit at 9.38% on total turnover in the present case that to when the turnover is more than 1,00,00,000/- and paid tax thereon. It is submitted that the estimate of profit at 30% of the turnover as proposed by the Ld AO, after explanation of assessee was finally accepted , thus, the Ld. AO accepted such contention of the assessee and have assessed income of the assessee on the return income so offered by the assessee. However, penalty u/s 271B was initiated on the assessee, wherein the Ld. AO observed that the assessee was required to file prescribed audit in forms specified u/s 44AB of the IT Act, 1961, which she has not done. It was the submission of the Ld. AR that since it was a proven fact that under ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... bove 8% of gross profit, then he is not required to get its accounted audited. However, as per section 44AB of the I.T. Act every person is required to get its accounted audited if his total sales, turnover or gross receipts as the case may be in business exceeds 1 Cr., failing to do so, the assessee would be penalized under section 271B of the Income Tax Act. The appellant failed to submit any reasonable cause for failure to comply the provision of section 44AB of the Act, therefore, the penalty imposed by the assessee was confirmed by the Ld. CIT(A). The fact in the present case which has been observed by the Ld. AO and also apparent from the records that assessee because of her bonafide belief may be wrong has not maintained any books of ..... X X X X Extracts X X X X X X X X Extracts X X X X
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