2025 (6) TMI 1451

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....rk for textiles processing activities like Dyeing, Bleaching. Printing and Finishing of woven fabric. The assessment in the case of the appellant-company was completed vide order dated 30.03.2022 passed under section 147 r.w.s 144 read with section 144B of the Income Tax Act 1961 [in short "the Act"]. During the course of assessment proceedings, the Assessing Officer noted that the appellant-company had receipts under section 194C at Rs. 3,20,42,152/- during the year under consideration. But appellant-company had failed to disclose above income and not filed it's return of income and also not furnished any documentary evidence in respect contractual receipts. Therefore, the Assessing Officer estimated the net profit @ 8% on total gross rece....

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....th the explanations furnished by the appellant company, the Assessing Officer levied penalty of Rs. 1,50,000/- u/sec.271B of the Act on the gross receipts of Rs. 3,40,88,569/- @ 0.5% i.e. Rs. 1,70,442/- or at a maximum of Rs. 1,50,000/-. 3. On being aggrieved by the penalty order passed by the Assessing Officer u/sec.271B of the Act, the appellant-company carried the matter in appeal before the learned CIT(A). The learned CIT(A) after considering the submissions of the appellant-company, upheld the penalty order of the Assessing Officer passed u/sec.271B of the Act, in absence of any cogent reasons for not getting it's books of accounts audited as per the provisions of sec.44AB of the Act. 4. Aggrieved by the order of the learned CIT(A), ....

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....case of Virudhunagar District Cooperative Consumers vs. Income Tax Officer in ITA No. 1065/Chny/2019. 5.1. Learned Counsel for the Assessee accordingly pleaded that the penalty sustained by the learned CIT(A) should be deleted. 6. Shri Srinath Sadanala, learned Sr. AR, DR on the other hand, submitted that the appellant-company has not explained any satisfactory reason before the Assessing Officer as well as before the learned CIT(A) for delay in filing the audit report. Therefore, the authorities below levied the penalty u/sec.271B of the Act which is in accordance with the provisions of the Income Tax Act and as such, the same may please be confirmed in the interest of justice. 7. We have heard both the parties, perused the material on ....