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2023 (2) TMI 748 - ITAT ALLAHABADPenalty u/s 271A - estimation of income - default of not maintaining the books of accounts by the assessee - As contended that the assessee is not required to maintain the books of accounts u/s 44AA as the turnover of the assessee as well as income from business was not more than the minimum limit provided under the said provision - HELD THAT:- When the assessee has claimed the agriculture income and business income assessee was under bona fide belief that he was not required to maintain the books of accounts as per the provisions of section 44AA(2)(i) - Only in consequence of the assessment order, the business income of the assessee was assessed at Rs. 4,59,800/- instead of agriculture income claimed by the assessee would not ipso facto lead to the conclusion that the assessee was very well aware about the requirement of keeping and maintaining the books of accounts. Accordingly, when the very basis of levying the penalty by the ACIT is contrary to the assessment framed by the AO and even business income of the assessee prior to the assessment order was not above the limit prescribed u/s 44AA(2)(i) for keeping and maintaining the books of accounts then the case falls in the ambit of reasonable cause for the said failure as provided under section 273B of the Income Tax Act. Hence, the penalty levied by the ACIT u/s 271A is deleted. - Decided in favour of assessee.
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