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TMI Blog2019 (12) TMI 1307X X X X Extracts X X X X X X X X Extracts X X X X ..... tion of transportation works in the name & style of 'M/s Agarwala Transport' and filed its return of income on 27.09.2012 for the A.Y.2012-2013 declaring total income at Rs. 11,61,300/-. Similarly, the assessee filed its return of income for A.Y.2013-2014 on 21.09.2013 declaring total income at Rs. 10,67,380/-. Both the cases of the assessee were selected for scrutiny and statutory notices were issued to the assessee. During the course of assessment proceedings, the AO found that the assessee has not filed books of account, therefore, the AO estimated the net profit @1% of the gross transportation receipts and assessed the total income of the assessee at Rs. 38,02,740/- for the assessment year 2012-2012. Similarly, the AO assessed the total ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the Act in both the assessment years under consideration deserve to be quashed. In this regard, ld. AR relied on the following case laws :- i) ACIT Vs. Aggarwal Construction Company, (2007) 107 TTJ (Chd) 623; and ii) Harilal Dhanwani Vs. ITO (1993) 45 TTJ (Del) 437. 7. On the other hand, ld. DR relied on the orders of authorities below. He further submitted that the levy of penalty under this section is mandatory in the case of not maintaining books of accounts. The assessee could not produce the books of account as required by the AO. The ld. AO gave opportunity for production of books of accounts in spite of that he did not comply. As per the section 44AA of the Act, the assessee is required to maintain the books of a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... has produced the tax audit report which has been accepted by the AO. The auditor has also certified that the various books have been maintained. The revenue has not brought any cogent material on record so as to establish that the assessee has not maintained books and such documents as required u/s.44AA of the Act or the rules made thereunder. Therefore, the penalty levied u/s.271A for both the assessment years under consideration cannot be sustained on the facts and circumstances of the present case. 9. On further perusal of the assessment as well as appellate order, we find that both the authorities below have only pointed out that the assessee has failed to produce books of accounts before the AO. In this regard, the assessee has expla ..... X X X X Extracts X X X X X X X X Extracts X X X X
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