2021 (8) TMI 648

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....2. The only issue to be decided in this appeal is as to whether the ld. CIT(A) was justified in confirming the levy of penalty u/s.271B of the Act in the facts and circumstances of the instant case. 3. We have heard rival submissions and perused the materials available on record. It is not in dispute that assessee is an individual carrying on the business of Management Consultancy services. The return of income for the A.Y.2015-16 was filed by the assessee on 27/08/2016 declaring total income of Rs. 2,10,69,340/- which admittedly included Management Consultancy fee received by the assessee amounting to Rs. 61,40,000/-. The ld. AO levied penalty u/s.271B of the Act on the ground that since the gross receipts of the assessee engaged in pro....

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....e making payments to the assessee is of absolutely no relevance to determine the character of receipt in the hands of the assessee recipient and for determining the status of the assesse as to whether he is engaged in business or profession. The assessee"s plea is that he is engaged in the business of rendering Management Consultancy services. The ld. AR also argued that though the assessee is a qualified Chartered Accountant, but had not practised Chartered Accountancy and is only engaged in the business of rendering Management Consultancy Services. The fact of assessee rendering Management consultancy Services is not disputed by the Revenue. The only dispute is whether the receipts from rendering Management Consultancy Services would be t....