Rejection of books doesn’t nullify obligation of timely compliance with section 44AB: Penalty upheld

Naresh Kumar Vs ITO (ITAT Hyderabad) ITAT Hyderabad held that rejection of books during assessment proceedings does not retrospectively nullify the obligation to comply with section 44AB of the Income Tax Act within the prescribed time. Accordingly, penalty under section 271B upheld. Facts- AO noticed that the assessee had deposited cash to the tune of Rs.1,00,10,000/-in his bank account. Accordingly, the case of the assessee was reopened u/s. 147 of the Act. After considering the submissions of the assessee, AO rejected the books of account u/s. 145 of the Act and computed the net profit at ...