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2017 (11) TMI 1878 - ITAT CUTTACKPenalty u/s.271A - non-maintenance of books of account as required u/s.44AA - no notice u/s.139(9) issued - HELD THAT:- We find in the instant case, the AO did not issue notice u/s.139(9) of the Act where books of accounts are not maintained and directing the assessee to remove the defect of not enclosing the financial statements i.e. gross receipts, expenses and net profit etc. and accepted the statement of total income and completed the assessment. If an assessee maintains such documents which enables to prepare an income or expenditure account/profit and loss account, then such document shall comply the requisite provisions u/s.44AA of the Act, which enables the Assessing Officer to compute the income of the assessee under the provisions of the Income-tax Act and should be treated as sufficient compliance for completion of assessment. In the present case, the Assessing Officer did not issue notice under section 139(9) of the Act directing the assessee to remove the defect of not having enclosed profit and loss account. The assessee had enclosed the statement of income where gross receipts, expenses are disclosed and profit was computed. The very fact that the Assessing Officer did not issue any notice of defect under section 139(9) shows that the AO was satisfied with documents accompanied with the return of income and are sufficient to enable him to compute the income of the assessee. Accordingly, we are of the substantive view that the penalty imposed by the AO cannot be sustained and we set aside the order of CIT(A) and delete the penalty levied u/s.271A of the Act and allow the grounds of appeal of the assessee.
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