TaxTMI 
TaxTMI 
2009 (2) TMI 207
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....ons of law stated therein (ii) set aside the order passed by the ITAT, Bangalore Bench "A" in I.T.A. No.703/Bang/2005 dated 14.7.2006 and confirm the order passed by the Assessing Authority, in the interest of justice and equity. This appeal coming on for admission this day, DEEPAK VERMA, J. delivered the following:- JUDGMENT Heard Sri. Arvind Kumar, for the appellant and Sri. Y.V. Raviraj, for the respondent. 2. With consent, arguments heard and record persued. 3. This appeal under Section 260A of the Income Tax, 1961 (hereinafter shall be referred to as the "Act") is at the instance of the Revenue against the order dated 14.7.2006 passed by the Income Tax Appellate Authority, Bangalore Bench, in ITA. No. 703/(Bang)/2005 for....
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..../s. Sathish Enterprises (IOC Dealer). In respect of two other businesses, according to assessee, due to his ignorance of law and bonafide mistake, he had not obtained Audit Report with regard to M/s. Khyathi Motors and M/s. Kyathi Enterprises. For these two business he had not obtained audit reports on the ground that individually from these two businesses, he had not exceeded the total turnover of Rs. 40,00,000/- for the relevant assessment year, as contemplated under Section 44AB of the Act. 6. For not obtaining proper audit report in respect of other two businesses, Assessee was issued a notice under sec. 211 (B) of the Act. The Assessee gave his reply. It was not found favorable by the Revenue, even though the same was co....
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....tion with regard to obtaining of audit report, it is necessary to read the definition of "business" as contained under Sec.2(13) of the Act, which is also reproduced for ready references :- "Section (13) "business" includes any trade, commerce or manufacture or any adventure or concern in the nature of trade, commerce or manufacture" The conjoint reading of the aforesaid provisions makes it clear that every person who is carrying on business and whose total sales of turnover exceeds Rs. 40 Lakhs in any previous year would be required to get his accounts audited by the Accountant. This does not show anywhere that in case assessee is carrying on many businesses, then the aggregate of the businesses has o be arrived at ....
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....as under:- "I am ignorant about incomplete audit report and the provision of law in this regard omission on my part if any was not intentional. Hence, you are requested to drop penalty proceedings and oblige." He had proceeded to give further clarification explanation on 24.4.2003. The relevant portion of it reads as under:- "This is in continuation to my submission dated. 4.4.2003 submitted to you on the above subject and in response to your notice dated 10.4.2005. For the A.Y. 2001-02 I through my accountant submitted for audit the accounts of M/s.Satish Enterprises, M/s Kyathi Motors (Workshop) Manipal and Khyathi Enterprises, Udupi. The auditors submitted the report under 44AB only, in respect of Satish Enerprises, ....
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....ed in Section 44AB of the Act. It is also clear from the records that this was for the first time he had committed this default. It is also relevant to mention that in any case, the assessee would not have gained a any manner whatsoever, if he had included other two businesses for working out the aggregate provided, he would have been award of the same. 12. No doubt, it is true that the assessee was being represented by his Chartered Accountant and he should have been little more careful and cautious in applying the legal proposition to the facts of the case. He should have added the aggregate of all the three businesses so as to have full compliance of section 44AB of the Act. But for the mistake or default of the Chartered Accoun....