TMI Blog2019 (5) TMI 1055X X X X Extracts X X X X X X X X Extracts X X X X ..... Assessee has shown a reasonable cause that due to disturbance among the partners, the books of account were not maintained. Hence, in view of provisions of section 273B of the Act, no penalty shall be imposable and allow the ground of appeal of the assessee. Consequently, the appeal of the assessee is allowed. Penalty u/s. 271F - assessee has failed to furnish return of income on or before 31.3.2014 without a reasonable cause - HELD THAT:- The disturbance caused among the partners steps compelled to closure of the business could not constitute a valid ground for the delay in furnishing the return of income, as income from the said concern, a partnership firm, if any, is exempt under s. 10(2A) of the Act. In other words, the assessee coul ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... there are credits of ₹ 73,13,808/- in the bank account of the assessee, which includes cash deposits of ₹ 19,17,000/- As there was no compliance during the assessment proceedings, the Assessing Officer computed income of the assessee at ₹ 14,62,762/- being @ 20% of the gross turnover of ₹ 73,13,808/-. On appeal, the CIT(A) reduced the computation of income to 10% being ₹ 7,31,880/- as against 20% computed by the Assessing Officer. 4. Therefore, the Assessing Officer levied penalty of ₹ 4,38,830/- holding that total income assessed of ₹ 14,62,760/- is the concealed income of the assessee. 5. On appeal, the CIT(A) directed the Assessing Officer to reduce the quantum of pe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d not maintain the books of account. 10. I have heard the rival submissions and perused the materials available on record of the Tribunal. The undisputed facts of the case are that the Assessing Officer observed that the assessee failed to keep and maintain books of account as per provisions of section 44AA of the Income tax Act, 1961 and, therefore, he levied penalty of R.25,000/- u/s.271A of the Act for non-maintenance of books of account in violation of section 44AA of the Act, which was confirmed in first appeal. 11. Section 273B provides as under: 273B. Notwithstanding anything contained in the provisions of clause (b) of subsection (1) of section 271, section 271A, section 271B, section 2 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ee. Consequently, the appeal of the assessee is allowed. ITA No.127/CTK/2019 13. In this appeal, the assessee agitated the confirmation of penalty of ₹ 5000/- levied u/s.271F of the Act. 14. I have the rival submissions and perused the record of the case. 15. The Assessing Officer has levied penalty u/s.271F of the Act on the ground that the assessee has failed to furnish return of income on or before 31.3.2014 without a reasonable cause. I find that Section 271F of the Act provides that If a person who is required to furnish a return of his income, as required under subsection (1) of section 139 or by the provisions to that sub-section, fails to furnish such ret ..... X X X X Extracts X X X X X X X X Extracts X X X X
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