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2018 (2) TMI 170 - AT - Income TaxPenalty proceeding u/s 271A - assessee has not maintained any books of accounts and filed his return of income by declaring the income u/s 44AD - reasonable cause - Held that:- We find that the assessee is earning the income by selling of milk though basically the assessee is an agriculturist having agricultural land. The assessee is having its own cows and Buffalos and thereafter, the sale of milk is not a regular business in true. The assessee has explained the reasons for not maintaining the books of accounts as assessee is basically an agriculturist and carrying out agricultural operations apart from the selling milk from the animal kept by the assessee. We find that the explanation of the assessee though may not be accepted as per the strict provisions of law however, the AO has not found the explanation of the assessee as untrue or malafide. The explanation furnished by the assessee clearly proves that there was a reasonable cause for not maintaining the books of accounts. Nature of the activity carried out by the assessee and in view of the provisions of section 273B of the Act we find that the assessee has explained a reasonable cause and consequently no penalty can be imposed. In view of the facts and circumstances of the case we delete the penalty of levy u/s 271A - Decided in favour of assessee.
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