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2013 (2) TMI 287 - AT - Income TaxPenalty u/s. 271-A - non-maintenance of books of account required u/s. 44AA - Held that:- The assessee did not maintain any books of account or other documents to show his correct income to support the income declared in the return. The assessee furnished return of income at Rs. 76,620/- which was not filed in accordance with the provisions of section 44AF. Further, the assessee claimed lower profit and gains as against the provisions of section 44AF. Therefore, it was mandatory for the assessee to keep and maintain such books of account and other documents as required u/s. 44AA(2)(iii). Admittedly, the total turnover, sales or gross receipts of the assessee are more than Rs. 10.00 lacs and the assessee failed to support its claim of lower profit. Therefore, merely because the AO computed income subsequently with the aid of section 44AF would not absolve the assessee from maintenance of account books and other documents as required by law. The AO has mentioned that nothing was produced before him for verification of the income declared in the return of income. The AO did not find any alternate except to estimate the income u/s. 44AF. Therefore, the provisions of section 44AA(2)(iii) and 44AF(5) would clearly apply in the case of the assessee - as the assessee did not file return of income as per provisions of section 44AF and claimed lower profit in the return of income, therefore, penalty is attracted in the case of the assessee. No justification to interfere with the orders of penalty as the assessee has not explained any reasonable cause which prevented the assessee from maintaining the books of account in accordance with law - against assessee.
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