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2020 (6) TMI 292 - AT - Income TaxPenalty u/s.271A - non complying the provisions of Section 44AA - CIT(A) upheld the action of AO observing that non-maintenance of books of account by the assessee enabled the AO to levy penalty u/s.271A - AO did not accept the book results shown by the assessee for computing the taxable income and he rejected the profits shown by the assessee in the return of income and he applied Section 145(3) of the Act and computed the profit after applying 4% of the turnover shown by the assessee - HELD THAT:- If the income of the taxpayer falls above the prescribed limit, then he should have to maintain books of accounts u/s.44AA and he should produce the same as and when required by the AO enabling him to calculate correct taxable income of the assessee, which is lack in this case. As noted from the assessment order and submissions of the assessee that there is no any specific date or nearby date when the books of accounts were got damaged by the white ant which came to the notice of the assessee that on a particular date the books of accounts have been damaged by the white ant and there is also no date as to when the hard disks were corrupted. Assessee could not show any reasonable cause under which he may get relief u/s.273B of the Act. Therefore, the AO was justified in imposing the penalty u/s.271A of the Act for non-maintenance of the books of accounts. Accordingly, we do not see any reason to interfere in the order of the CIT(A) in upholding the penalty levied - Decided against assessee.
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