9911796707
TMI Blog2023 (2) TMI 748X X X X Extracts X X X X X X X X Extracts X X X X ..... section 44AA(2)(i) - Only in consequence of the assessment order, the business income of the assessee was assessed at Rs. 4,59,800/- instead of agriculture income claimed by the assessee would not ipso facto lead to the conclusion that the assessee was very well aware about the requirement of keeping and maintaining the books of accounts. Accordingly, when the very basis of levying the penalty by the ACIT is contrary to the assessment framed by the AO and even business income of the assessee prior to the assessment order was not above the limit prescribed u/s 44AA(2)(i) for keeping and maintaining the books of accounts then the case falls in the ambit of reasonable cause for the said failure as provided under section 273B of the Income Tax ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... AO under section 142(1) and filed manual return of income for the year under consideration declaring total income of Rs. 31,177/- and net agriculture income of Rs. 15,70,200/-. The assessee explained the source of deposits in the bank account which includes the amount received from his uncle Shri. Pradeep Kumar Tripathi, remitted from Muscat, Oman and produced the supporting evidence of the said transfer of funds by his uncle. The AO accepted the said explanation of Rs. 2,58,52,121/- received by the assessee from his uncle. However, the explanation of the assessee regarding agriculture income of Rs. 15,70,200/- was partly accepted by the AO to the extent of Rs. 11,10,200/- and the balance amount of Rs. 4,59,800/- was treated as income from ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... as further submitted that the AO has made an addition to the business income from the agriculture income declared by the assessee. Thus, its estimation made by the AO by treating the agriculture income to the extent of Rs. 4,59,800/- as business income which cannot be a basis of levy of penalty under section 271A of the Income Tax Act. He has contended that when the business income as well as the turnover of the business is less than the limit provided under section 44AA of the Income Tax Act then the penalty levied under section 271A is not justified. Hence, he has pleaded that the penalty levied by the AO of Rs. 25,000/- under section 271A may be deleted. 5. On the other hand, learned DR has submitted that as per the provisions of sectio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... seen that the assessee has made withdrawal of Rs. 132,20,000/- from his six bank accounts. After considering the reply and submission of the assessee assessment order was passed u/s 144 on 26.12.2019, assessing total income of Rs. 6,55,570/-. Penalty u/s 271A was initiated for not maintaining books of account even though the deposit of Rs. 5,19,42,482/- was the account. 4. As per section 44AA of turnover/sales/gross receipts of the assessee exceeds Rs. 10 lakhs or business income exceeds Rs.1,20,000/- in the previous year, the assessee is required to keep and maintain books of accounts and other documents as per provisions of the Act. In the instant case, Assessment Order u/s. 144 of the Act, the turnover was considered at Rs., 5,19,4 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... imits of the turnover/ sales / gross receipts or the business income in the previous year. The ACIT who has passed the penalty order under section 271A has observed that in the assessment order under section 144 of the Act, the turnover was considered at Rs. 5,19,42,482/- on account of deposits made in the bank accounts which exceeds the monitory limit fixed for keeping and maintaining the books of accounts. This observation of the ACIT as recorded in para 4 of the impugned order is contrary to the facts as the AO has accepted the deposits in the bank account as non business receipts except treating the agriculture income to the extent of Rs. 4,59,800/- as business income of the assessee from Dairy business activity. Further when the assess ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
