2019 (1) TMI 1333 - AT - Income Tax

Penalty u/s 271B - assessee did not get its account audited - Held that - The issue relating to maintenance of books of account is pending before the CIT(A) in quantum appeals for the year under consideration was not controverted by the Ld. Sr. DR. It is also noticed that the Assessing Officer in the penalty order under section 271B has mentioned that the assessee did not maintain the books of accounts, this fact requires verification and moreover the Assessee stated at Bar that the issue relating to the maintenance of books of account is pending before the CIT(A), we therefore, by considering the totality of the facts deem it appropriate to remand these cases to the file of Ld. CIT(A) to be adjudicated afresh - Decided in favour of assessee for statistical purposes.

Summary

Issues: Appeal against penalty under Section 271B of the Income Tax Act, 1961.

Analysis:
The appeals were filed against separate orders of the Ld. CIT(A)-1, and since the issue was common in all appeals, they were disposed of together for convenience. The sole grievance of the assessee was the confirmation of penalty under Section 271B of the Act. The Ld. Counsel for the assessee argued that the penalty was levied as the assessee did not get its accounts audited, but contended that the issue of maintaining books of account was pending before the Ld. CIT(A) in quantum appeals. The Assessing Officer himself admitted that the assessee did not maintain books of account, questioning the justification for the penalty. On the other hand, the Ld. Sr. DR supported the penalty, stating that the assessee neither maintained books of account nor got them audited despite a turnover exceeding ?40.00 lakhs.

Upon considering the submissions, it was noted that the issue of maintaining books of account was pending before the Ld. CIT(A) in quantum appeals, which was not disputed by the Ld. Sr. DR. The Assessing Officer's statement about the non-maintenance of books of accounts required verification. The Ld. Counsel for the Assessee confirmed that the issue was pending before the Ld. CIT(A). Consequently, the cases were remanded to the Ld. CIT(A) for fresh adjudication in accordance with the law, after considering the outcome of the issue regarding the maintenance of books of account by providing a fair opportunity for the assessee to be heard. As a result, all appeals of the Assessee were allowed for statistical purposes.