TaxTMI 
TaxTMI 
2005 (6) TMI 223
X X X X Extracts X X X X
X X X X Extracts X X X X
.... reasonable cause for not getting accounts audited under s. 44AB." 2. The relevant and material facts for the disposal of this ground of appeal are that the assessee had filed its return of income for asst. yr. 1996-97 wherein he had shown gross receipts of Rs. 29,05,783 in the trading account. On perusal of the TDS certificates accompanying the return; the AO noticed that, the assessee had received Rs. 23,37,765 from M/s Mawana Sugar Mills, Mawana, on account of transportation contract, whereas in the. trading account transportation receipts of Rs. 6,82,810 only have been shown. Thus, the assessee had not reflected the entire transportation receipts in its P&L a/c. Since the gross receipts of the assessee including the transportation rece....
X X X X Extracts X X X X
X X X X Extracts X X X X
....een earned from other parties on transportation against which Rs. 8,58,741 have been debited as reflected above leaving a credit balance of Rs. 6,82,810 which have been reflected in assessee's trading and P&L a/c. Thus, he contended that its turnover under s. 44AB works out to Rs. 37,64,040 as detailed in the order of CIT(A) and hence, it does not attract provisions of s. 44AB of IT Act and so no penalty was leviable under s. 271B. 6. After considering the submission of the assessee, the learned CIT(A) confirmed the penalty levied by the AO under s. 271B by making following observation in his order: "I have perused the facts and considered the submissions made by the learned counsel. I do not find merits in the submissions made by the lea....
X X X X Extracts X X X X
X X X X Extracts X X X X
...., he was not required to get his accounts audited under s. 44AB. So penalty confirmed by the CIT(A) is liable to be deleted. In support of his contention, he placed reliance on the following decisions: (i) ITO vs. Nanak Singh Guliani (2001) 171 CTR (MP) 195 : (2002) 124 Taxman 650 (MP) (ii) Paras Transport Co. vs. ITO (2005) 92 TTJ (Agra) 607 8. On the other hand, the learned Departmental Representative placing reliance on the reasoning given in the order of the CIT(A), submitted that he has rightly confirmed the penalty imposed by the AO for the detailed reasons mentioned in his order. 9. We have considered the rival contentions of both the parties, perused the records and have gone through the orders of the tax authorities below as we....