Case law and opinion for filing levy against penalty under section 271B of the IT Act

[DURAISAMY ANANDHAN]

My assesee is a goods transport operator. Since she had not more than 10 vehicles any time during the year she had filed ROI u/s 44AE. Her family members also the same hence they are also filed their ROI u/s 44AE.one year she got a big contract work for 8.00 chores. Hence the assessee got the contract on her name and operated all the family members vehicle for that contract. Please note that there is no written contract between family members and her. But all the contract amount are received through her Bank account only. TDS u/s 194C is also there on her PAN only. After survey conducted in the contractee premises, ADIT came for verification for genuinity of the transaction and instructed orally to the assesee that ROI should be filed on her name only since the entire contract amount was accounted on her PAN. accordingly revised return of income has been filed u/ s 44AB. Now assessment completed u/s 143(3) and levied penalty u/s 271B. Please give opinion and case laws for my assesee

[DR.MARIAPPAN GOVINDARAJAN]

Section 271B povides for penalty if an assessee has not done audit under section 44AB after crossing the threshold limit. In your case it seems whether you are coming under the purview of tax audit. As per the contract made by your client it may be presumed that she will cover under tax audit. If the same is not done the penalty levied is correct.

[DURAISAMY ANANDHAN]

Thank you sir for your early reply. My case is audited u/s 44AB. But audited and filed after the due date.

[DR.MARIAPPAN GOVINDARAJAN]

You may file appeal before the Appellate Authority concerned.

AI Summary

Transport Operator Penalized for Late Filing Under Section 44AB Despite Compliance; Appeal Suggested for Penalty Under Section 271B. A goods transport operator filed returns under section 44AE, as she operated fewer than 10 vehicles. She secured a large contract worth 8 crore rupees, using family members' vehicles without a written agreement, with all payments made to her bank account. TDS was deducted under her PAN. After a survey, the ADIT advised filing returns under section 44AB due to the contract size. Although she complied, a penalty under section 271B was imposed for late filing. A respondent suggested that the penalty is valid if the audit was not timely, and advised appealing to the Appellate Authority.