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2019 (3) TMI 1464 - AT - Income TaxPenalty u/s 271B - failure to get accounts audited u/s 44AB - statutory obligation to maintain books of accounts not adhered to - HELD THAT:- AO himself recorded that no books were maintained by the assessee and penalty u/s 271B of the Act is to be imposed when any person fails to get his accounts audited. Admittedly there is no dispute that no books were maintained by the assessee and as rightly argued by the Ld.AR getting the same audited does not arise at all. Therefore, we find force in the arguments of AR and taking the support from the decision of Hon’ble High Court of Allahabad in the case of CIT vs Bisauli Tractors [2007 (5) TMI 181 - ALLAHABAD HIGH COURT] When there are no books of account, the question of their audit does notarise. If there is any fault in the matter, the said fault can be examined with reference to non-maintenance of Books of Account. There are certainly no defaults for not obtaining the said Audit Reports for years under consideration. The requirement of audit is in relation to the books maintained. When there are no books, there is nothing to audit. - We cancel the penalty imposed by the AO u/s 271B - Decided in favour of assessee.
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