Penalty u/s 271b

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This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

23 April 2014 assessee engesed in wholesale business considering profit margin 3-4% His turnover crossed limit prescribed u/s 44AB He didn't approach to an accountant but opted to pay tax 8% on total turnover. He has been charged u/s 271B. Can an explanation be given as if assessee approached to an accountant he would have pay less tax than actual, as a result revenew has received excess tax allready so imposing penalty further is unjustified ?

Nikhil Kaushik

Nikhil Kaushik (Expert)

24 April 2014 paying higher tax without preparing proper books and getting the audit done doesnt spare you from penalty for not getting the audit done..at best you can file a revised return and request for refund!

Rupesh Jain

Rupesh Jain (Expert)

24 April 2014 IF YOUR SALE CROSS THE LIMIT U/S 44AB THEN YOU HAVE TO AUDIT YOUR ACCOUNT OTHERWISE YOU HAVE TO PAY PENALITY FOR NO COMPLING THE LAW PROVISION.

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