Home Income tax Corporate Income tax No Penalty Over T.O. Limitation U/S 44AB for Books of Account

No Penalty Over T.O. Limitation U/S 44AB for Books of Account

0
No Penalty Over T.O. Limitation U/S 44AB for Books of Account
ITAT's Order for Bangla Readymade Garments Mfg and Traders Welfare Association

Because of the turnover restrict specified, the Revenue Tax Appellate Tribunal (ITAT), Kolkata Bench, has revoked the penalty related to the audit requirement mandated by Part 44AB of the Revenue Tax Act, 1961.

The appellant, Bangla Readymade Clothes Mfg. and Merchants Welfare Affiliation, represents a collective of people shaped with the target of safeguarding the pursuits of garment producers and merchants.

On this matter, the Assessee has lodged an attraction in opposition to the choice of the Fee of Revenue Tax (Appeals) which upheld the penalty imposed by the Assessing Officer beneath Part 271B of the Revenue Tax Act, pertaining to the delayed submission of the audit report.

Anil Kochar, the assessee’s counsel, maintained that the affiliation’s gross income consisted solely of the service charges it was paid to facilitate its members’ funds of gross sales tax into the federal government treasury and different operations. Moreover, it was claimed that the assessing officer mistook the purported money deposit for a turnover.

The assessee’s authorized consultant additional claimed that as a result of the turnover was beneath the edge established by Part 44AB of the Revenue Tax Act, the assessee was exempt from the requirement to have the books of accounts audited and that no nice was thereby imposed beneath Part 271B of the Revenue Tax Act.

The respondent’s counsel, Ranu Biswas, argued that the assessee had did not specify why it had acquired the large amount of cash from its members and deposited it within the authorities treasury for gross sales tax. It was additional argued that for the reason that assessee might clarify the origin of the alleged money deposit, it needed to be considered as a part of the assessee’s enterprise turnover and topic to audit beneath Part 44AB of the Revenue Tax Act.

The bench famous that the restrict supplied beneath Part 44AB of the Revenue Tax Act was Rs. 1 crore within the audit of an individual conducting enterprise. Below Part 44AB of the Revenue Tax Act, the assessee was required to have the books of accounts audited if the enterprise’s gross sales turnover or gross revenues, because the case could also be, exceeded or exceeded Rs. 1 crore.

Moreover, it was noticed that the assessee was actively concerned in industrial actions, and their annual income amounted to Rs. 32,38,340, which was beneath the aforementioned threshold of Rs. 1 crore.

Consequently, the assessee was exempted from the requirement of auditing their books of accounts beneath Part 44AB of the Revenue Tax Act. Due to this fact, in gentle of this discovering, it’s potential to get rid of the penalty imposed for non-compliance with part 271B of the Revenue Tax Act whereas contemplating the grant of the assessee’s attraction.

LEAVE A REPLY

Please enter your comment!
Please enter your name here