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TMI Blog2018 (2) TMI 170X X X X Extracts X X X X X X X X Extracts X X X X ..... e selling milk from the animal kept by the assessee. We find that the explanation of the assessee though may not be accepted as per the strict provisions of law however, the AO has not found the explanation of the assessee as untrue or malafide. The explanation furnished by the assessee clearly proves that there was a reasonable cause for not maintaining the books of accounts. Nature of the activity carried out by the assessee and in view of the provisions of section 273B of the Act we find that the assessee has explained a reasonable cause and consequently no penalty can be imposed. In view of the facts and circumstances of the case we delete the penalty of levy u/s 271A - Decided in favour of assessee. - ITA No. 765/JP/2017 - - - Dat ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 44AD of the Act. Since, the assessee has not maintained any books of account, therefore, the AO initiated the penalty proceeding u/s 271A and levy penalty of ₹ 25,000/- vide order dated 16.01.2013. The assessee challenged the action of the AO before the ld. CIT(A) but could not succeed. 3. Before us, the ld. AR of the assessee has reiterated his contentions as raised before the ld. CIT(A) in para 4.2 as under:- 4.2 During the appellate proceeding the appellant has filed written submission as under and also argued the case on the same basis. The appellant is a villager and is an agriculturist. His main source of income is from the agricultural land only. With a view to supplement his livelihood, he had started sellin ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he total receipts from such sells were far below ₹ 10,00,000/- as prescribed u/s 44AA of the Act. In the assessment proceedings, the learned AO was not willing to appreciate these facts. Accordingly, he had proceeded to estimate such income at ₹ 3,00,000/- as against ₹ 1,80,000/- shown by the appellant without any basis and without bringing any material on record to substantiate his estimate of ₹ 3,00.000/-. For such quantum addition, separate appeal had been filed which is pending before the honorable CTT (A)-III, Jaipur which is pending as on date. 2. Coming to the alleged default u/s 44AA of the Act as pointed out vide para 2.2 of the assessment order, it may be pointed out that the appellant is an agri ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ble on account of such bona-fide default as held by honorable Supreme Court in the case of M/s Hindustran Steel Ltd. (1972) 83 ITR 26 (SC) holding therein as under: that an order imposing penalty for failure to carry out a statutory obligation is the result of a quasi-criminal proceedings, and penalty will not ordinarily be imposed unless the party obliged either acted deliberately in defiance of law or guilty of conduct, contumacious or dishonest, or acted in conscious disregard to its obligation. Penalty will also not be imposed merely because it is lawful to do so. Whether penalty should be imposed for failure to perform a statutory obligation is a matter of discretion of the authority to be consider to be exercised judicially ..... X X X X Extracts X X X X X X X X Extracts X X X X
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