TMI Blog2009 (3) TMI 186X X X X Extracts X X X X X X X X Extracts X X X X ..... 992 contending that provisions of Section 44AB of the Act are not applicable in its case because the Gross Receipts did not exceed the sum of Rs.40 lacs. The said contention was not accepted by the Assessing Officer and penalty of Rs.72,451/- was levied under the provisions of Section 271B of the Act. - held that - In fact, on a reading of provisions of Section 44AB of the Act, it is a moot question as to which of the three phrases can be said to be applicable in a given case, and the same would depend on facts of each case and no straight jacket formula can be evolved in this context. Accordingly, the assessee was entitled to contend that when the terms Turnover and Gross Receipts are separated by the use of word or, the assessee would be ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... assessee, a show cause notice was issued on 05.11.1992. The assessee filed reply on 12.11.1992 contending that provisions of Section 44AB of the Act are not applicable in its case because the Gross Receipts did not exceed the sum of Rs.40 lacs. The said contention was not accepted by the Assessing Officer and penalty of Rs.72,451/- was levied under the provisions of Section 271B of the Act. 3. The assessee challenged the said order and in support of the Appeal, placed reliance on Tax Audit Manual Published by the Bombay Chartered Accountants' Society, which contained opinion of eminent counsel that in case of a person carrying on banking business, the appropriate expression to be considered for deciding the applicability of the provision ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ct?" This question shall be accordingly considered. 7. In the circumstances, without entering into the analysis of provisions of Section 44AB of the Act, for the purpose of determining whether in the case of money lender, Turnover would constitute the basis for invoking the said provision or Gross Receipts would constitute the basis for applying the said provision, the appeal is decided on the ground as to whether the assessee had a bonafide belief which constituted reasonable cause in the facts and circumstances of the case. Under the provisions of Section 273B of the Act, legislature has provided that notwithstanding anything contained in the provisions of Section 271B of the Act, no penalty shall be imposable on a person or an a ..... X X X X Extracts X X X X X X X X Extracts X X X X
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