TaxTMI 
TaxTMI 
2025 (10) TMI 1240
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....stitution of India, the petitioner has challenged the Order dated 5.12.2023 passed by the respondent exercising its powers under Section 119(2)(b) of the Income Tax Act, 1961 (for short 'the Act') rejecting the application preferred by the petitioner to condone the delay for filing a fresh Income Tax Return in response to the notice under Section 139(9) of the Act. 5. Brief facts of the case are as under: 5.1 The petitioner filed return of income for Assessment Year 2018-19, on 14.9.2018, which was marked as defective return as per the provisions of Section 139(9) of the Act. 5.2 In response to the notice issued under Section 139(9) of the Act, the petitioner filed a reply with an explanation that the petitioner is not required to obtain the audit report under Section 44AB of the Act as the total turnover of the petitioner Company was to the tune of Rs. 41,60,956/-, which is below the threshold limit of Rs. 1 Crore. It was also submitted by the petitioner that books of accounts of the petitioner Company were audited under the provisions of Companies Act, 2013, however, as the turnover of the petitioner is below the threshold limit as provided under Section 44AB of the Act,....
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....defective by CPC. On perusal of return of income, it is seen that the assessee has shown sales of Rs. 41,60,956/-and interest income at Rs. 78,87,493/-. The gross receipts of the assessee exceeded Rs. 1 crore, therefore, its books of account were subject to audit u/s. 44AB of the Act. The assessee being Private Limited Company has failed to get its books of account audited. It is therefore submitted that there is violation of provisions of section 44AB of the Act on the part of the assessee. Regarding, the alternative contention of the petitioner that the interest income cannot be considered as turnover of the assessee, it is submitted that the provisions of section 44AB provides that every person carrying on business shall, if his total sales, turnover or gross receipts, as the case may be, in business exceed or exceeds one crore rupees in any previous year has to get his accounts of such previous year audited by an accountant before the specified date and furnish by that date the report of such audit in the prescribed form duly signed and verified by such accountant and setting forth such particulars as may be prescribed. It is therefore submitted that considering the phrase '....
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....enerate income by any means. Further, the assessee has paid interest of Rs. 57,71,497/- which is claimed as expenditure. The assessee cannot change the head of interest income and interest expenditure. If interest paid is business expenses, the corresponding interest receipts comes under the purview of 'gross receipts' embedded in section 44Ab of the Act. In view of the above, interest income earned on advances, deserves to be treated alike with business receipts for the purpose of working out turn over or gross receipts, and, it could not be treated differently from business receipts merely because such income flowed from a different source. 7. With reference to para nos. 3(G) to 3(1), the respondent denies each and every allegation, averment and contention raised in these paras if any. It is submitted that the reason given by the assessee for condonation of delay and that the alleged refund could not be claimed, due to the mistake of his accountant/consultant, is not a sufficient cause for condonation of delay in filing Return of Income. It is further submitted that the reasons for delay provided by the petitioner are not tenable as the assessee had time to file/revise h....
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....of such previous year audited by an accountant before the specified date and furnish by that date the report of such audit in the prescribed form duly signed and verified by such accountant and setting forth such particulars as may be prescribed: Provided that this section shall not apply to the person, who declares profits and gains for the previous year in accordance with the provisions of sub-section (1) of section 44AD and his total sales, turnover or gross receipts, as the case may be, in business does not exceed two crore rupees in such previous year: Provided further that this section shall not apply to the person, who derives income of the nature referred to in section 44B or section 44BBA, on and from the 1st day of April, 1985 or, as the case may be, the date on which the relevant section came into force, whichever is later: Provided also that in a case where such person is required by or under any other law to get his accounts audited, it shall be sufficient compliance with the provisions of this section if such person gets the accounts of such business or profession audited under such law before the specified date and furnishes by that date th....