9911796707
TMI Blog2023 (9) TMI 799X X X X Extracts X X X X X X X X Extracts X X X X ..... were not even ever prepared/maintained. The ratio of law as interpreted in the case of CIT vs. Bisauli Tractors ( 2007 (5) TMI 181 - ALLAHABAD HIGH COURT ) on which the assessee placed reliance wherein the Hon ble High Court has concluded that the penalty u/s 271B of the Income Tax Act is not attracted in case where no account has been maintained instead recourse u/s 271A can be taken. Since, the Ld. AO appreciated the fact that assessee has not maintained any books of account but have not initiated any penalty proceedings u/s 271A for non - maintaining to books, instead the Ld. AO proposed to initiate the penalty proceedings u/s 271B of the Act for not getting the books audited which is very impractical thinking of the AO when the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ened u/s 147 of the Income Tax Act and finalised accepting the return income. During the course of assessment proceedings AO noticed that the appellant has shown turnover of Rs. 1,30,00,000/- but has failed to get accounts audited as per provisions of section 44AB of the I.T. Act. Accordingly, AO initiated penalty proceedings u/s 271B of the I.T. Act, thereafter, penalty order u/s 271B was passed on 24.09.2022 imposing penalty of Rs. 65,000/- (0.5% of total turnover of Rs. 1,30,00,000/-). 3. Aggrieved by the penalty order, assessee preferred an appeal before the Ld. CIT(A), NFAC, but was unsuccessful. Dissatisfied with the findings of the Ld. CIT(A), the assessee preferred an appeal before the ITAT, hence, the case is before us for adjud ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... has not done. It was the submission of the Ld. AR that since it was a proven fact that under bonafide belief the assessee has not maintained any books of account the penalty for not getting the books of accounts audited cannot be imposed on the assessee, to support this contention Ld Ar place his reliance on the judgment of Hon ble Allahabad High Court in the case of CIT vs. Bisauli Tractors reported in [2008] 299 ITR 219 (All) wherein the Hon ble High Court has held that section 271B is not attracted in case where no account has been maintained and instead recourse u/s 271A can be taken. It was the submission of the Ld. AR that since it is the fact that there were books of account maintained by the assessee which was observed by Ld. Ass ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... records that assessee because of her bonafide belief may be wrong has not maintained any books of account and, therefore, it was impossible to get the accounts audited which were not even ever prepared/maintained. The ratio of law as interpreted by the Hon ble Allahabad High Court in the case of CIT vs. Bisauli Tractors (supra) on which the assessee placed reliance wherein the Hon ble High Court has concluded that the penalty u/s 271B of the Income Tax Act is not attracted in case where no account has been maintained instead recourse u/s 271A can be taken. Since, the Ld. AO appreciated the fact that assessee has not maintained any books of account but have not initiated any penalty proceedings u/s 271A for non - maintaining to books, instea ..... X X X X Extracts X X X X X X X X Extracts X X X X
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