2009 (3) TMI 186

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....he year which  constituted turnover but the gross interest received which constitute the basis for liability u/s. 44AB." 2. The Assessment Year in question is 1992-93. The Assessee, an association of persons, is carrying on business of financing. The Gross Interest Receipts for the year under consideration were Rs.1,85,510/- on the total amount of advances which were to the tune of Rs.1,44,90,381/-. The Assessing Officer was of the view that in terms of provisions of Section 44AB of the Income Tax Act, 1961 (the Act), the Assessee was under an obligation to get its accounts audited because the total amount of advances during the year under consideration constitute the turnover of the assessee which exceeded the stipulated limit of R....

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....ct. The appeal was accordingly allowed and the penalty was cancelled. 4. The Tribunal has confirmed the order made by Commissioner (Appeals) and dismissed the Departmental Appeal. It is this order of Tribunal, which is under challenge in the present Appeal. 5.  Heard learned Senior Standing Counsel appearing for the appellant revenue and learned advocate appearing for the respondent assessee. Both the sides have reiterated the respective stands recorded by the authorities below. 6. Having heard the learned counsel for the respective parties, the Court feels that the correct and appropriate substantial question of law in the facts of the present case would be:   "Whether the assessee had a reasonable cause so as not t....