TMI Blog2020 (6) TMI 292X X X X Extracts X X X X X X X X Extracts X X X X ..... should produce the same as and when required by the AO enabling him to calculate correct taxable income of the assessee, which is lack in this case. As noted from the assessment order and submissions of the assessee that there is no any specific date or nearby date when the books of accounts were got damaged by the white ant which came to the notice of the assessee that on a particular date the books of accounts have been damaged by the white ant and there is also no date as to when the hard disks were corrupted. Assessee could not show any reasonable cause under which he may get relief u/s.273B of the Act. Therefore, the AO was justified in imposing the penalty u/s.271A of the Act for non-maintenance of the books of accounts. Accordi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... g income from the sale of Indian made foreign Liquor. During the course of assessment proceedings, the assessee was asked to produce the books of accounts by the AO for completing the scrutiny assessment u/s.143(3) of the Act. The assessee submitted audit report along with balance sheet and profit and loss account, bank statement, copies of money receipts towards license fees paid and copy of VAT returns only. The AO provided many opportunity to the assessee to produce the books of accounts as mentioned in the audit report issued by the Chartered Accountant, but the assessee did not produce any books of accounts and furnished their written submissions before the AO, which reads as under :- My books of account was audited by the qualifi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y audited by the Chartered Accountant and he has not pointed out any defect in audit report. The books of accounts were maintained in the computer system and it was got printed but the physical copy of the books of accounts were damaged by white ant which was not visible and hard disk of the computer in which the books of accounts was maintained also got corrupted. Ld. AR further submitted that since the assessee has maintained such books of account which was duly audited and submitted before the AO as may enable the AO to compute his total income in accordance with the provision of law, therefore no offence was committed by the assessee so that he could be visited with penalty. Therefore, the penalty proceedings initiated by the AO u/s. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er documents as required by section 44AA of the Act or the rules made thereunder, in respect of any previous year or to retain such books of account and other documents for the period specified in the said rules, the Assessing Officer or the Commissioner (Appeals) may direct that such person shall pay, by way of penalty a sum of twenty-five thousand rupees. The relevant provisions of Section 271A of the Act read as under :- Failure to keep, maintain or retain books of account, documents, etc 271A. Without prejudice to the provisions of [section 270A or] section 271, if any person fails to keep and maintain any such books of account and other documents as required by section 44AA or the rules made thereunder, in respect of any pre ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and hard disk of the computer in which books of accounts were prepared also got damaged. The AO did not accept the book results shown by the assessee for computing the taxable income and he rejected the profits shown by the assessee in the return of income and he applied Section 145(3) of the Act and computed the profit after applying 4% of the turnover shown by the assessee. Therefore, there was a cogent reason before the AO for imposing the penalty. It is the duty of the assessee to maintain books of accounts as per Section 44AA of the Act. If the income of the taxpayer falls above the prescribed limit, then he should have to maintain books of accounts u/s.44AA of the Act and he should produce the same as and when required by the AO en ..... X X X X Extracts X X X X X X X X Extracts X X X X
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