VAIKUNTHAM PACCS LTD, SALEM V. ITO, WARD-1(7), SALEM

ITA 378/CHNY/2023

AI Insights

The case involves M/s. Vaikuntham Primary Agricultural Co-operative Credit Society Ltd., which appealed against a penalty of Rs. 47,866 confirmed by the Commissioner of Income Tax (Appeals), National Faceless Appeal Centre, Delhi. The penalty was levied by the AO for not getting the accounts audited under section 44AB of the Income Tax Act for the Assessment Year 2016-17. The appellant argued that their turnover was below the prescribed limit of Rs. 1 Crore, hence no audit was required. The Senior Departmental Representative agreed that the turnover fact needed verification by the AO.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 133930 (ITAT-CHENNAI)
• Duration Of Justice: 1 month(s) 3 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 25-04-2023
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Next Hearing Date: 25-04-2023
• Assessment Year: 2016-2017
• Appeal Filed On: 22-03-2023
• Laws Referred To: Income Tax Act
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Co-operative Credit Society
• Section: 271B

Judgement Text

आयकर अपीलीय अिधकरण ‘बी’ ायपीठ चे ई म । IN THE INCOME TAX APPELLATE TRIBUNAL ‘B’ BENCH, CHENNAI माननीय +ी मनोज कु मार अ/वाल ,लेखा सद4 एवं माननीय +ी मनोमोहन दास ाियक सद4 के सम8। BEFORE HON’BLE SHRI MANOJ KUMAR AGGARWAL, AM, AND HON’BLE SHRI MANOMOHAN DAS, JUDICIAL MEMBER आयकर अपील सं./ ITA No.378/Chn y/2023 (िनधा@रण वष@ / Assessment Year: 2016-17) M/s.Vaikuntham Primary Agricultural Co-operative Credit Society Ltd. Vaikuntham Post, Sankari Taluk, Salem Dist. -637 103. बनाम / V s . Income Tax Officer Ward-1(7), Salem. था यी ले खा सं. /जीआ इ आ र सं. /P AN / G I R No . AAA AV -75 69- G (अ पीलाथ%/Appellant) : (&'थ% / Respondent) अपीलाथ% की ओरसे/ Appellant by : Shri S.Sridhar (Advocate-Erode)-Ld. AR &'थ% की ओरसे/Respondent by : Shri D.Hema Bhupal (JCIT) –Ld.DR सुनवाई की तारीख/Date of Hearing : 26-04-2023 घोषणा की तारीख /Date of Pronouncement : 26-04-2023 आदेश / O R D E R Manoj Kumar Aggarwal (Accountant Member) 1. Aggrieved by confirmation of penalty u/s 271B for Rs.47,866/- for Assessment Year (AY) 2016-17, the assessee is in further appeal before us. The impugned order has been passed by learned Commissioner of Income Tax (Appeals), National Faceless Appeal Centre (NFAC), Delhi [CIT(A)] on 07-02-2023 in the matter of impugned penalty levied by Ld. AO vide order dated 19.02.2020. The penalty has been levied on the allegation that the assessee failed to get its accounts audited u/s 44AB. ITA No.378/Chny/2023 - 2 - 2. The Ld. AR, at the outset, submitted that the turnover of the assessee is below prescribed limit of Rs.1 Crore and therefore, no such audit was required. In such a case, the impugned penalty would have no legs to stand. The Ld. Sr. DR concurred with the same but submitted that the fact of turnover could be verified by Ld. AO. 3. Accepting the same, we direct Ld. AO to verify the claim of Ld. AR. If turnover is below prescribed limit, the impugned penalty would not be sustainable. No other point has been urged before us. 4. The appeal stand allowed for statistical purposes. Order pronounced in open court on 26 th April, 2023. Sd/- ( MANOMOHAN DAS) ाियक सद4 / JUDICIAL MEMBER Sd/- (MANOJ KUMAR AGGARWAL) लेखा सद4 / ACCOUNTANT MEMBER चे6ई / Chennai; िदनांक / Dated : 26-04-2023 DS आदेश की Sितिलिप अ /ेिषत/Copy of the Order forwarded to : 1. अपीलाथ /Appellant 2. यथ /Respondent 3. आयकर आय ु त/CIT 4. वभागीय त न ध/DR 5. गाड फाईल/GF