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TMI Blog2017 (11) TMI 1878X X X X Extracts X X X X X X X X Extracts X X X X ..... ering from cold, which in our considered, is not a plausible one and, thus, we reject the application and proceed to dispose off the appeal on the basis of written submission filed by the assessee and material available on record and the submissions of ld. DR. 3. As per the office note, there is a delay of 27 days in filing the abovesaid appeals. The assessee has filed an application dated 20.05.2016 for condonation of delaying along with an affidavit explaining the reasons for delay. Considering the application of assessee and looking to the facts and circumstances of the case and there is no objection of ld. DR, we allow the application and condone the delay of 27 days in filing all the appeal and the appeals are heard on merits after c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... statements and documents found that there are some discrepancies and the assessee could not support the claims and the AO made additions and assessed the total income at Rs. 15,68,220/- and passed the order u/s.153A/143(3) of the Act dated 30.03.2014. 7. Subsequently, the AO initiated penalty proceedings for nonmaintenance of books of accounts u/s.44AA (2) of the Act as the assessee was receiving consultancy charges from M/s Emar Mining Construction (P) Limited and the assessee's receipts for the said assessment year including mobilisation advances has exceeded the limit and required to maintain books of accounts, therefore, penalty proceedings were initiated. In compliance the ld.AR submitted that the assessee has filed appeal against t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er :- Section 139(9): Where the 85[Assessing] Officer considers that the return of income furnished by the assessee is defective, he may intimate the defect to the assessee and give him an opportunity to rectify the defect within a period of fifteen days from the date of such intimation or within such further period which, on an application made in this behalf, the 88[Assessing] Officer may, in his discretion, allow; and if the defect is not rectified within the said period of fifteen days or, as the case may be, the further period so allowed, then, notwithstanding anything contained in any other provision of this Act, the return shall be treated as an invalid return and the provisions of this Act shall apply as if the assessee had faile ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tenance of bank account. If a penalty under section 271A could be imposed for non-maintenance of bank account, then all the assessees who did not maintain any bank account but wrote their books of account regularly and maintained cash book and ledgers would be liable for penalty. This would lead to an absurd situation. Therefore, if an assessee maintained such document which enabled an accountant, and not necessarily a Chartered Accountant, to prepare an income or expenditure account, then such document should be considered as a book of account which may enable the Assessing Officer to compute the income of a given assessee under the provisions of the Act. Therefore, in absence of any specific rule made by the Board for the people covered u ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s of this Act. Nowhere in the said section is it stated that the books of accounts have to be maintained as per the prescribed format. This is not a case where no books of accounts were maintained at all. Although books of accounts had to be prescribed such books had not been prescribed under the rules for the business of civil contracts, in which the assessee is engaged. In the absence of there being any prescribed format for the various professions as stated in the said section assessees are entitled to maintain books of accounts in terms of the nature of the business or profession carried on by the various categories mentioned therein. In the instant case, since on the basis of the books of accounts produced by the assessee, the AO has p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... it and loss account. The assessee had enclosed the statement of income where gross receipts, expenses are disclosed and profit was computed. The very fact that the Assessing Officer did not issue any notice of defect under section 139(9) shows that the Assessing Officer was satisfied with documents accompanied with the return of income and are sufficient to enable him to compute the income of the assessee. Accordingly, we are of the substantive view that the penalty imposed by the AO cannot be sustained and we set aside the order of CIT(A) and delete the penalty levied u/s.271A of the Act and allow the grounds of appeal of the assessee. 13. The issue raised in other appeals i.e. ITA Nos.204 to 206/CTK/2016 for the assessment years 2010-11 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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