In order to invoke provisions of section 44AB, amount of purchases can not be included in qualifying amount of turnover as mentioned in Act

IT: Where assessee, a builder, filed audit report under section 224 of Companies Act, 1956, in such a case even though no separate report in Form 3CA as required under section 44AB had been filed, it would not lead to levy of penalty under section 271B
IT: In order to invoke provisions of section 44AB, amount of purchases can not be included in qualifying amount of turnover as mentioned in Act
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[2014] 48 taxmann.com 292 (Mumbai - Trib.)
IN THE ITAT MUMBAI BENCH 'H'
Esque Finmark (P.) Ltd.
v.
Assistant Commissioner of Income-tax-9 (1), Mumbai*
I.P. BANSAL, JUDICIAL MEMBER
AND SANJAY ARORA, ACCOUNTANT MEMBER
IT APPEAL NO. 1624 (MUM.) OF 2011
[ASSESSMENT YEAR 2005-06]
JULY  11, 2014
Section 44AB, read with section 271B, of the Income-tax Act, 1961 and section 224 of the Companies Act, 1956 - Tax audit (Penalty) - Assessment year 2005-06 - Whether where assessee, a builder, filed audit report under section 224 of Companies Act, 1956 in such a case even though no separate report in Form 3CA as required under section 44AB had been filed, it would not lead to levy of penalty under section 271B - Held, yes [In favour of assessee]
Section 44AB of the Income-tax Act, 1961 - Tax audit (Turnover) - Assessment year 2005-06 - Whether in order to invoke provisions of section 44AB, amount of purchases can not be included in qualifying amount of turnover as mentioned in Act - Held, yes [Para 4.2]