TMI Blog2011 (1) TMI 1455X X X X Extracts X X X X X X X X Extracts X X X X ..... isions of section 44AB of the Act. 2. In brief the facts are that assessee is an individual engaged in the business of civil contracting for Government/Municipal Council. The assessee filed a return of income for the assessment year 2006-07 declaring an income of ₹ 6,14,680/-, which was not accompanied by Tax Audit Report as prescribed under section 44AB of the Act. The Assessing Officer initiated penalty proceedings under section 271B of the Act for the reason that the gross receipts of the assessee exceeded the prescribed limit and, therefore, in terms of section 44AB of the Act, the assessee was required to get his books of account audited and furnish the audit report before the specified date. The claim of the assessee before t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 91 (Gau.) and (ii) CIT v Bisauli Tractors 299 ITR 219 (All), to submit that penalty under section 271B of the Act can be imposed only in a case where there is a failure to get the books of account audited, whereas in the present case the assessee did not maintain books of account and, therefore, the offence contemplated under section 44AB of the Act cannot be assumed. In the written submissions placed at pages 1 to 2 of the Paper Book, the appellant has also explained the reasons for the non-maintenance of the account books. As per the appellant, till the assessment year 2004-05 the turnover was below ₹ 40 lakhs and assessee has been declaring income on presumptive basis under section 44AB without maintaining books of account. For ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ection 44AB of the Act. 6. We have considered the rival submissions carefully. In the present case, it is an admitted fact that the assessee did not maintain any books of account for the year under consideration. Consequently, when there are no account books, the question of their audit does not arise. The requirement of audit enshrined in section 44AB of the Act is in relation to the books of account maintained by the assessee. In case the assessee has not maintained the books of account, question of audit would not arise. In the instant case, there is no denial to the assertion of the assessee that he has not maintained books of account for several years in past also. Under these circumstances, in our view, the parity of reasoning laid ..... X X X X Extracts X X X X X X X X Extracts X X X X
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