9911796707
TMI Blog2004 (6) TMI 278X X X X Extracts X X X X X X X X Extracts X X X X ..... ned CIT(A) has erred on facts as well as in law in sustaining the penalty under s. 271A by not appreciating: (a) The legal position that r. 6F does not prescribe any books for persons engaged in business. (b) That the appellant has kept copy on basis of which balance sheet is drawn from year to year and income is shown by increase in assets over those in the last year. This method of computation ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the case are that the assessee had filed a return of income of Rs. 60,669. The return was processed under s. 143(1)(a) and penalty proceedings under s. 271A of the IT Act, 1961 r/w s. 274 were initiated for non-maintenance of books of account, as the assessee's income exceeded the threshold limit of Rs. 40,000. A show-cause notice under s. 271A r/w s. 274 was issued on24th Dec., 1996. This notice ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e Act nor the rule prescribes types of books of account to be maintained. The assessee maintains a copy in which bank transactions, sundry debtors and creditors, investments and drawings are kept from which balance sheet is drawn and income is declared by increase of assets over those in last years. The Authorised Representative submitted that the computation has been done on the basis of Circular ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r the Act. The assessment was completed under s. 143(1)(a) of the IT Act, 1961. The assessee has been maintaining bank transactions, sundry debtors and creditors, investments and withdrawals for which balance sheet is drawn and defective bills of over those of last year (sic). Since the form of keeping/maintaining accounts has not been prescribed, we agree with the view of the Authorised Represent ..... X X X X Extracts X X X X X X X X Extracts X X X X
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