Sec. 271B No penalty on club having bonafide belief of mutuality

Brief of the Case Karnataka High Court held In the case of M/s Koramangala Club vs. ITO that it is clear that the assessee was under the bonafide belief that the provisions of Section 44AB were not applicable to a Club, while supplying beverages, liquor etc., to its members as it was not engaged in any business, but only a mutuality. As per section 271B, no penalty shall be leviable to a person or on assessee for any failure to obtain audit report; if it is proved that there was reasonable cause for such failure. The explanation of bonafide belief offered by the appellant would constitute a r...