TaxTMI 
TaxTMI 
2019 (9) TMI 911
X X X X Extracts X X X X
X X X X Extracts X X X X
....venience they were clubbed and heard together and disposed of by a common consolidated order. 2. First we shall take up appeal in ITA No.888/B/2019, where the assessee has challenged the levy of penalty u/s 271B of the Act. The brief facts of the case are that the assessee is a Civil Contractor and filed the return of income on 18-06-2015 disclosing total income of Rs. 4,86,930/-. Subsequently, the Return of income was processed u/s 143(1) of the Act and was selected for limited scrutiny under CASS and notice u/s143(2) and 142(1) of the IT Act were issued. In compliance the Ld. AR of the assessee appeared and filed the details as called for. The AO on verification of details found that there is mismatch of contract receipts disclosed by th....
X X X X Extracts X X X X
X X X X Extracts X X X X
....edings, the assessee has not filed the explanations and reasonable cause for Default in not getting the Books of accounts audited. Finally, AO based on material available on record levied penalty of Rs. 58,404/- and passed order u/s 271B on 29-01-2017. 3. Aggrieved by the order, assessee has filed an appeal before the ld.CIT(A), whereas the Ld.CIT(A) in the appellate proceedings considering the grounds of appeal and submissions filed by the assessee observed that the assessee could not explain the reasonable cause for failure to get the books of accounts audited and obtain Audited report under the provisions of section 44AB of the IT Act and confirmed the penalty levied u/s 271B of the IT Act, and dismissed assessee's appeal. Aggrieved by ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ts and filed the return of income on 18-06-2015 and referred paper book page-5 wherein in the income and expenditure account, the contract receipts are disclosed at Rs. 80,56,300/- which is not disputed by the revenue. We found that the assessee has disclosed the turnover as per the Books of accounts and filed the return of income, but the fact remains that at the time of filing of the Return of income, the turnover of the assessee was below the limit prescribed u/s 271B of the IT Act,1961. Hence, the assessee was under the bonafide belief that the Books of accounts need not be audited and filed the Return of income. We find the explanations of the Ld.AR are realistic and duly supported with the financial statements which cannot be over loo....
X X X X Extracts X X X X
X X X X Extracts X X X X
....) of the Act,Rs. 1,43,000/- vide order dated 29-05-2017. 7. Aggrieved by the AO's order, the assessee has filed appeal before the CIT(A), whereas the ld.CIT(A) has confirmed the penalty and dismissed assessee's appeal. Aggrieved by the CIT(A)'s order, the assessee is in appeal before the Tribunal. 8. At the time of hearing, the Ld.AR submitted that the AO while initiating penalty has not considered the Reasons for levying penalty i.e for concealment of income or furnishing of inaccurate particulars and filed copy of notice u/s 274 and sec.271(1)(c) of the IT Act, dated 13-12-2016 and supported the Arguments with judicial decisions and prayed for cancellation of penalty. Contra, Ld.DR supported the orders of ld.CIT(A). 9. We heard the riv....
X X X X Extracts X X X X
X X X X Extracts X X X X
....dment, the assessing officer has initiated the penalty by properly recording the satisfaction for the same? (3) Whether on the facts and in the circumstances of the case, the Tribunal was justified in deciding the appeals against the Revenue on the basis of notice issued under Section 274 without taking into consideration the assessment order when the assessing officer has specified that the assessee has concealed particulars of income? 3. The Tribunal has allowed the appeal filed by the assessee holding the notice issued by the Assessing Officer under Section 274 read with Section 271(1)(c) of the Income Tax Act, 1961 (for short the Act') to be bad in law as it did not specify which limb of Section 271(1)(c) of the Act, the penalty....