TMI Blog2017 (11) TMI 1878X X X X Extracts X X X X X X X X Extracts X X X X ..... 44AA of the Act, which enables the Assessing Officer to compute the income of the assessee under the provisions of the Income-tax Act and should be treated as sufficient compliance for completion of assessment. In the present case, the Assessing Officer did not issue notice under section 139(9) of the Act directing the assessee to remove the defect of not having enclosed profit and loss account. The assessee had enclosed the statement of income where gross receipts, expenses are disclosed and profit was computed. The very fact that the Assessing Officer did not issue any notice of defect under section 139(9) shows that the AO was satisfied with documents accompanied with the return of income and are sufficient to enable him to compute the i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... DR, we allow the application and condone the delay of 27 days in filing all the appeal and the appeals are heard on merits after considering the submissions of ld. DR and the material facts available on record. 4. Since the issue involved in all the appeals are connected and common, hence, the appeals are heard altogether and disposed off by this consolidated order. We shall take up appeal i.e. ITA No.203/CTK/2016 (AY : 2009-2010) and the facts narrated therein. 5. The sole substantive ground raised by the assessee is that the CIT(A) erred in confirming the levy of penalty u/s.271A for nonmaintenance of books of account which is bad in law. 6 Brief facts of the case are that the assessee is engaged in the consultancy service and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ntain books of accounts, therefore, penalty proceedings were initiated. In compliance the ld.AR submitted that the assessee has filed appeal against the order u/s.153A/143(3) of the Act and requested not to take any coercive action till disposal of the appeal. The assessee submitted the explanations on 23.09.2014 at para 3 of the order and the AO was not satisfied with the reply and explanations of assessee and levied the penalty u/s.271A of the Act of ₹ 25,000/- and passed order on 29.9.2014. 8. Aggrieved by the order of AO, the assessee has filed an appeal with the CIT(A). The CIT(A) dismissed the appeal of the assessee. 9. Aggrieved by the order of CIT(A), the assessee has filed an appeal before the Tribunal. 10. Ld. DR ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... contained in any other provision of this Act, the return shall be treated as an invalid return and the provisions of this Act shall apply as if the assessee had failed to furnish the return : Provided that where the assessee rectifies the defect after the expiry of the said period of fifteen days or the further period allowed, but before the assessment is made, the 88[Assessing] Officer may condone the delay and treat the return as a valid return. Explanation.-For the purposes of this sub-section, a return of income shall be regarded as defective unless all the following conditions are fulfilled, namely :- (a)xxxxxxx (aa)xxxxxx (b) xxxxxxx (c) xxxxxxxx (d) xxxxxxxx (e) xxxxxxxxx (f) where regular books o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... essing Officer to compute the income of a given assessee under the provisions of the Act. Therefore, in absence of any specific rule made by the Board for the people covered under section 44AA(2)(i) or (ii), it should be considered as sufficient compliance if an assessee produces such document which may enable the Assessing Officer to compute the assessee s income under the provisions of the Act. In the instant case, the Assessing Officer did not issue any notice under section 139(9) directing the assessee to remove the defect of not having enclosed what he considered as profit and loss account. The assessee had enclosed the statements of income where gross receipts were shown and computation of profit was also shown. The very fact that ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... siness or profession carried on by the various categories mentioned therein. In the instant case, since on the basis of the books of accounts produced by the assessee, the AO has processed the assessment and has accepted the said return, the subsequent issuance of notice and proceedings initiated for imposition of penalty on the ground that the books of accounts were not maintained in accordance with the provisions of the Act, is not just and proper, when there is no infraction of s. 44AA. Accordingly, the penalty proceedings have to be dropped. (Paras 4 5) Conclusion : No books have been prescribed under the rules in terms of s. 44AA for the business of civil contracts and, therefore, penalty under s. 271A is not leviable on the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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