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2020 (4) TMI 258 - AT - Income TaxPenalty u/s 271A - Non maintaining the books of account and other documents - HELD THAT:- In this case the AO noted that the assessee has not maintained any books of accounts and as such he has committed a default within the meaning of provisions of sec 44AA of the Act which made the assessee liable for penalty u/s 271A - AO thus imposed the penalty u/s 271A which was confirmed by the ld. CIT(A). During the course of hearing, the Bench noted that the assessee did not maintain the books of account as provided u/s 44AA as the gross receipts of the assessee from business was more than ₹ 10 lacs - assessee did not advance any controverting arguments against the findings of the lower authorities. We find no reason to interfere with the order of the ld. CIT(A). Thus the solitary ground of the assessee as to confirming of penalty u/s 271A of the Act by the ld. CIT(A) is sustained. Penalty u/s 271B - non-audit of books of accounts - HELD THAT:- We have upheld the levy of penalty under section 271A for non-maintenance of books of accounts. Once the penalty has been levied for non-maintenance of books of accounts, there cannot be penalty again for non-audit of books of accounts which were not kept at first place. It is clearly a case of impossibility of performance where it is expected that the assessee should get her books of accounts audited when it is a known and admitted fact that there are no regular books of accounts which have been maintained at first place. Our view is fortified by the decision of Rajmal Parsuram Todi [1996 (8) TMI 102 - GAUHATI HIGH COURT]wherein it was held that when a person commits an offence by not maintaining the books of accounts as contemplated under section 44AA, the offence is complete and after that, there can be no possibility of any offence as contemplated under section 44AB and therefore, the imposition of penalty is erroneous.
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