No penalty for failure to get books audited for Bonafide belief of non-applicability of Audit

P.D. Usha Rani Vs. ITO (ITAT Hyderabad) Penalty u/s. 271B is attracted for failure to get accounts audited u/s. 44AB. Even though the law prescribes the levy of penalty, in case of default, the same is not automatic as provisions of Section 273B gives relief, when there is a reasonable cause. The AO has to examine the same as per the provisions. In these cases, the turnover has increased marginally over the lower limit of Rs. 40 Lakhs prescribed u/s. 44AB for the first time during the year. Even though assessees are on the record of department in earlier years, there is no need to get the book...