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2019 (4) TMI 610 - ITAT AMRITSARLevy of penalty u/s. 271A - non-maintenance of accounts - GP estimation @ 16%, i.e., as against the disclosed rate of 12.78% - HELD THAT:- Section 271A prescribes a penalty for a failure to keep and maintain such books of accounts and documents as required u/s. 44AA, or rules made thereunder for any previous year. In the present case there is no finding either by the AO or even by the CIT(A) qua any of these books or documents being not maintained by the assessee. How, then, one wonders section 271A gets attracted? As afore-noted, both the authorities have stated of the assessee not maintaining ‘proper accounts’. Even as the assessee claims otherwise, where the accounts are not correct and complete, i.e., to the satisfaction of the AO, it is section 145(3) that would get attracted, entitling the assessing authority to, rejecting the books results, make an estimate of the assessee’s income relying on the relevant material. As it appears, there has occurred a confusion between the ‘books of account’, referred to in section 44AA and section 271A, and the ‘accounts’ referred to in section 145(3). The rejection of accounts per se would not, even as explained in Asst. CIT vs. Aggarwal Construction Co. [2007 (1) TMI 203 - ITAT CHANDIGARH-B] attract section 271A - Decided in favour of assessee.
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