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TMI Blog2018 (1) TMI 1292X X X X Extracts X X X X X X X X Extracts X X X X ..... scheme due to non maintenance of accounts and discontinuance of old firm and paid tax accordingly. 3. That during the year the additional income was offered on deeming basis hence its interpretation should not be dragged in imposing a penalty u/s 271A. 4. That the appellant reserves the right to add, alter, amend, delete any grounds of appeal before or during the course of appeal." 2. The assessee filed its return of income and declared income u/s 44AAD. The case was selected for scrutiny under CASS and consequently assessment order u/s 143(3) was passed on 14.03.2014. During the course of assessment proceedings the AO asked the assessee to produce the books of accounts but the assessee could not produce the same as the assessee do ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... puting the income. The assessee has maintained such books of accounts and documents which enable the Assessing Officer to compute the total income of the assessee. Hence, the requirements of Section 44A has been complied with by the assessee and there is no default on this account. The ld. AR has thus submitted that when the assessee itself filed a revised computation of income on the basis of the bank account transactions which has been accepted by the AO, then the books of accounts and documents maintained by the assessee has enabled the AO to compute the total income of the assessee. He has relied upon the decision of Chandigarh Bench of this Tribunal in case of ACIT vs. Agarawal Construction Co. 291 ITR (A.T.) 226. He has also relied up ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Income Tax Act. The Assessee has clearly violated the provisions of section 44AA of the Act when the turnover of the assessee is exceeding minimum limit provided under the said provisions. Though the total income of the assessee was assessed by the AO as per the transaction recorded in the bank account however, the bank account of the assessee cannot be accepted or regarded as books of accounts and therefore, the bank account will not substitute the books of accounts to be maintained by the assessee. It is a clear case of non compliance of the provisions of section 44AA of the Act. Therefore, in the absence of bonafide explanation the penalty levied u/s 271A is justified. Accordingly, in the facts and circumstances of the case, I do not fi ..... X X X X Extracts X X X X X X X X Extracts X X X X
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