TaxTMI 
TaxTMI 
2021 (11) TMI 328
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....rs of ld. Commissioner of Income Tax (Appeals)- 7, Pune ('CIT(A)' for short) commonly dated 29.06.2018 for the assessment years 2014-15 respectively. 2. Since the identical facts and issues are involved in all the appeals, we proceed to dispose of the same by this common order. 3. For the sake of convenience and clarity, the facts relevant to the appeal in ITA No. 1543/PUN/2018 are stated herein. 4. The grounds of appeal raised by the assessee are as under:- "1. In the facts and circumstances of the case and in law, the impugned penalty of Rs. 1,23,800.00 levied by the learned Assessing Officer under section 271B of the I.T. Act 1961 being arbitrary, perverse, devoid of merits and being bad in law the same may please be deleted....
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....na-fide belief that there was no requirement of obtaining the audit report u/s. 44AB of the Act since it has maintained the proper books of accounts and got theme audited as per the provisions of the Maharashtra Cooperative Societies Act, 1960 and obtained the audit report on 18th July, 2016 and income is exempt u/s. 80P(2) of the Act. He further submitted that levy of penalty u/s. 271B is not mandatory. It is only discretionary and no penalty can be levied for mere technical breach of law placing reliance on the decision of the Hon'ble Supreme Court in the case of Hindustan Steel Ltd. vs. State of Orissa, 83 ITR 26 (SC). Thus, it is pleaded that since it is under the bona-fide impression, there is no requirement of got the books of acc....
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....tes a reasonable cause for not obtaining the audit report. The explanation of the appellant is that it was under bona-fide belief that there is no requirement under law to obtain the audit report u/s. 44AB as its income was exempt u/s. 80P(2) of the Act and its books accounts were subject to audit by Government Auditor. This explanation was not found to be false by the lower authorities. The lower authorities merely rejected the explanation and proceed with levy of penalty. There is nothing on record to doubt the explanation offered by the appellant society. Therefore, when the assessee entertained bona-fide belief that its account were not subject to audit u/s. 44AB, it would certainly constitute reasonable cause for not obtaining the audi....