Panalty u/s 271b

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

21 April 2014 gross turnover for AY 14-15 is 109 lakhs consited of both business and agriculture.While business turnover is 93 lakhs ariculture(tea plantation )is 16 lakhs
His he required to submit audit report as gross is crossed 100 lakhs prescribed u/s 44AB?

Nikhil Kaushik

Nikhil Kaushik (Expert)
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21 April 2014 dont think so. refer 81 ITD 295 (Mum)

income earned under section 10-13A not included for 44AB.

Nikhil Kaushik

Nikhil Kaushik (Expert)
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21 April 2014 dont think so. refer 81 ITD 295 (Mum)

income earned under section 10-13A included for 44AB.

Rupesh Jain

Rupesh Jain (Expert)
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22 April 2014 if you business of trading and you are decaling income more than 8% then not required audit for your business turnover rs.93 lacs otherwise you have to take audit report on your business sales. agriculture income/sales not include in turnover.

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)
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22 April 2014 @ Nikhil Ji

Case cited is distinguishable.

@ Questioner

Assessee can't be called as a pure agriculturist (since doing business also). Income from tea manufacture is not fully tax free (corollary to rule 8 of IT Rues,1962).
In view of the above, Rs. 16 lacks has to be counted for determining the threshold limit of 44AB meaning thereby ,in the cited issue tax audit applies.

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Querist : Anonymous

Querist : Anonymous (Querist)

22 April 2014 assessee is not manufecturer of tea but tea leaf cultivator.

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)
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22 April 2014 If Rs. 16 lacks is the proceeds of tea leaves sales, the it is agricultural income {304 ITR 1 (SC)}and hence can be excluded to check the threshold limit of Rs. 1 crore for the purpose of 44AB.

Querist : Anonymous

Querist : Anonymous (Querist)

22 April 2014 Thank you Chackrapani Sir,
suppose a assessee both have agriculture and non-agriculture income.He submitted his return u/s 139(1)without claiming the tax free agriculture income benefit, now can he claim the benefit on subsequent assessment proceedings ?

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)
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23 April 2014 Cannot claim in the course of assessment proceedings unless the assessee files a revised return.

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