Home
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2024 (6) TMI 973 - AT - Income TaxIssues involved: The judgment involves the levy of penalty under section 271B of the Income-Tax Act, 1961 for Assessment Years 2013-14 and 2014-15. Adjudication of the Appeal in ITA No.1199/Chny/2023: The case pertains to a Real Estate business assessed to income tax, where a penalty was imposed under section 271B for failure to get accounts audited u/s 44AB. The appellant contended that the penalty was unjustified, citing non-maintenance of proper books of accounts. The Commissioner (Appeals) upheld the penalty, leading to the appeal before the Tribunal. Key Details: - A survey operation revealed cash deposits and investments by the assessee. - The assessee estimated income at 4% of gross receipts due to lack of proper books of accounts. - The Assessing Officer (AO) estimated income at 8% of gross receipts, resulting in additional income. - Penalty proceedings u/s 271B initiated and a penalty of Rs. 1,50,000/- imposed. - The appeal before the CIT(A) was dismissed, prompting the present appeal before the Tribunal. Tribunal's Observations: - The Tribunal considered the distinction between non-maintenance and improper maintenance of books of accounts. - The appellant did not maintain books of accounts for the relevant assessment years. - The obligation to maintain proper books of accounts under section 44AA is crucial for correct income assessment. - The Tribunal referenced a Chennai Tribunal decision and a Guwahati High Court case supporting the assessee's position. - As the assessee did not maintain books of accounts, the penalty under section 271B was deemed erroneous. - The Tribunal directed the AO to delete the imposed penalty in both appeals. Conclusion: The Tribunal allowed both appeals, emphasizing that the penalty under section 271B was unwarranted due to the non-maintenance of books of accounts, as per the provisions of the Income-Tax Act. This summary encapsulates the legal judgment involving the levy of penalty under section 271B of the Income-Tax Act, 1961, highlighting the key issues, details, adjudication process, tribunal's observations, and the ultimate conclusion reached in favor of the appellant.
|