2023 (9) TMI 611

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....FAC, Delhi, dated 06/09/2021. The grounds of appeal submitted by the assesee are as under: - 1. That under the facts and the law, the learned CIT (Appeals), NFAC, Delhi erred in confirming the penalty levied by the learned AO u/s 271B at Rs. 1,50,000/- for not getting the audit u/s 44AB, though, the appellant is a Charitable Trust and income is not taxable and provisions of section 44AB for getting Audit u/s 44AB are not applicable to charitable institutions. Prayed to delete the penalty. 2. That under the facts and the law, the learned CIT (Appeals), NFAC, Delhi erred in confirming the levy of penalty u/s 271 B at Rs. 1,50,000/- by the learned AO for the reason that addition of Rs. 8,00,000/- (added Rs. 10 lakh, subseq....

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....Act on 31.07.2010, running a school under the name "Academic World School" which is situated in Lolesara district Bemtara, Chhattisgarh. Return of income was e-filed on 15.03.2018 for the relevant AY 2017-18. For the year under consideration assessee society has a receipt of Rs. 12,13,08,840/-, therefore it was the view of the Ld AO that assessee is liable for Tax Audit u/s 44AB. During the assessment proceedings assessee submitted that it is a educational institution running a CBSE Affiliated school since inception and imparting education is an activity for charitable purpose under section 2(15) of the Act therefore provision of section 44AB which relates to persons carrying on Business will not be apply in assessee's case. Therefore, no p....

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.... same was treated as business income by the AO which was incorrect since the assessee was involved in educational activities, having involved in no other activities. It was the submission that under such a situation provisions of section 44AB cannot be applied in the case of assessee, thus, the penalty imposed u/s 271B was bad in law and subject to deletion. 6. Ld Sr Dr on the other hand strongly supported the order of revenue authorities. 7. We have considered the rival submissions, perused the material available on record and orders of the authorities below. Assessee's contention that the assessee is an educational institution since beginning. This contention of the assessee is fortified by the documents like registration of the ass....