9911796707
TMI Blog2020 (1) TMI 1715X X X X Extracts X X X X X X X X Extracts X X X X ..... account. In such a scenario penalty u/s. 271A of the Act in contravention of sec. 44AA can be only levied and not u/s 271B of the Act. We note that in Nirmal Kumar Jain [2016 (3) TMI 1454 - ITAT DELHI] has held that when the AO has found during assessment that assessee is not maintaining books of account, then penalty u/s 271B for not getting the books audited should not be levied. Penalty u/s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Act") of an amount of Rs. 1,50,000/-. 3. Briefly stated the facts are that the AO noted in the assessment proceedings that the assessee had made transaction of shares and securities through M/s. ICICI Securities Ltd. So the AO issued notice u/s. 133(6) of the Act to NSE calling for details of transactions in the name of the assessee. According to AO, from the reply of NSE it was found that the to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eard rival submissions and gone through the facts and circumstances of the case. At the outset itself, we note that the AO in the assessment order dated 25.03.2015 at para 6 has found that assessee is not maintaining any books of account. In such a scenario penalty u/s. 271A of the Act in contravention of sec. 44AA can be only levied and not u/s 271B of the Act. We note that the Delhi Tribunal in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... posed for non-maintenance of books of account u/s. 271A and no penalty can be imposed u/s. 271B for violation of section 44AB requiring ITA Nos. 6696 &6645/Del/2014 audit of accounts. Similar view has been taken by the Hon'ble Allahabad High Court in CIT vs. Bisauli tractors (2008) 299 ITR 219 (All). The Hon'ble Allahabad High Court reiterated the similar view in CIT and Anr. Vs. S. K. Gupta and C ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y u/s 271B ought not to have been levied against the assessee and since the ld. CIT(A) has exercised his co-terminus power to levy penalty u/s 271A of the Act for not maintaining books of account, therefore, we restrict the penalty to the tune of Rs. 25,000/- in place of Rs. 1,50,000/- as imposed by AO and confirmed by Ld. CIT(A). So, the assessee gets relief of Rs. 1,25,000/-. 6. In the result, ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
