2014 (5) TMI 693

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....ee filed his return of income for AY 2006-07 on 27.11.2006 declaring total income of Rs 3,18,567/-. 4. During the course of assessment proceedings AO noticed that Assessee was doing contract work for Hindustan Coca Cola Braveries Ltd and had received payment of Rs 80.64 lacs which exceeded the monetary limit prescribed u/s 44AB of the Act and therefore the Assessee should have got his accounts audited for the previous year 1.4.2005 to 31.3.2006 before the specified date and furnished the audit report. Since the assessee had failed to comply with the provisions of s. 44AB, the AO was of the view that Assessee has committed default so as to attract penalty u/s 271B of the Act. The submission of the Assessee that he was a commission agent and....

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....855/-, the payments have also been made by the appellant on account of short broken expenses. Thus the entire above receipts of Rs. 80,64,855/- and various expenditures incurred out of such receipts are accounted for in the books of accounts of the appellant for the year under consideration. Though, the appellant has also shown its commission of Rs. 5,98,436/- in the payment side of above account, but this aspect does not affect the merits of the case. The very fact is that the appellant is getting the above entire receipts credited in its bank account and books of account and incurring various expenses out of the same. These facts show that appellant is just not acting as an agent on behalf of the above company and getting only its commiss....

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....t since it was acting similar to kacha arahatia, therefore as per circular no 452 dated 17.3.1986 issued by CBDT, the amount received from the principal was not in the nature of turnover and therefore it was not obliged to get the accounts audited under s. 44AB of the Act. He therefore submitted that since the assessee was under a bonafide belief, the penalty levied u/s 271B be deleted. Ld D.R. on the other hand supported the order of AO and CIT(A). 7. We have heard the rival submissions and perused the material on record. 8. Before us, the argument of the Id AR is that the assessee was acting as an agent and had arranged the trucks owned by others on hire for his principal and the receipts which was received by him was received in a fidu....