2019 (9) TMI 725

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....10-2011 & 2011-12. 3. The brief and relevant facts are that the Assessing Officer observed that the assessee has received commission of Rs. 64,16,667/- and Rs. 67,51,712/-, for which has neither got his books of account audited nor furnished report on such audit as required u/s.44AB of the Act. Therefore, he initiated penalty proceedings u/s.271B of the Act. In reply to show cause, the assessee submitted that since the assessee has not claimed any expenditure against the income earned under different heads of income, the provision of section 44AB is not applicable. The Assessing Officer observed that as per the provision of section 44AB of the Act, a person carrying on business is required to get the accounts compulsory audited if the tota....

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....fore, the immunity from penalty cannot be allowed to the assessee merely because the entire amount received by the assessee has been offered to tax without claiming any expenditure or deduction therefrom. 7. We have heard rival submissions and perused the record of the case. For proper adjudication of the case, we find it appropriate to reproduce relevant of provisions of section 44AB of the Act, which reads as under: "44AB. Every person,- (a) carrying on business shall, if his total sales, turnover or gross receipts, as the case may be, in business exceed or exceeds one crore rupees in any previous year; or (b) carrying on profession shall, if his gross receipts in profession exceed 51[fifty] lakh rupees in any previous year; or ....