Case Law Details
Saraswati Gupta Vs ITO (ITAT Kolkata)
ITAT Confirms penalties under section 271A of Income Tax Act, 1961 for not maintaining books of account and Section 271B for not getting the books of account audited
Recently the “A” Bench Of Kolkata Income Tax Appellate Tribunal passed a judgement in the above case confirming the penalties u/s 271A for not maintaining books of account and 271B for not getting the books of account audited. The central point of discussion was whether both the penalties can be levied at the same time for the same AY or not, as we all have the assumption that if the books of account are not maintained then penalty u/s 271A shall be levied not u/s 271B because if books of account are not maintained, question of auditing such books does not arises on the first place and various judgements replicates the same.
Issue :- In this case assessee’s 2 assessment years’s are into consideration, that are AY 2011-12 & AY 2012-13. Assessee filed its return of income for AY 2011-12 declaring total income of Rs 1,96,350/- and for AY 2012-13 declaring total income of Rs 2,34,620/-. Both the assessment years’s were reopened by the Ld. Assessing Officer u/s 147 on the basis of information of a bank account which was maintained by the assessee, wherein huge transactions were reflected. The AO noted that an amount of Rs. 2,73,54,650/- & Rs. 2,39,30,000/- for AY 2011-12 & AY 2012-13 respectively was deposited in that bank account and was not shown in her return of income. The ld. Assessing Officer considered it as a business turnover and computed the income @ 8%. Assessee accepted it as a business turnover but challenged the percentage used by the Ld. Assessing officer to calculate the income and got full relief for the AY 2011-12 from the ITAT and for the AY 2012-13 the assessee got partial relief from the ITAT i.e the rate was reduced to 4% from 8%.
Later on The ld. Assessing Officer came to a conclusion that the assessee is liable to pay penalty u/s 271A of the Act for not maintaining the books of account as provided u/s 44AA of the Act and also liable to pay penalty u/s 271B of the Act for not getting the books of account audited as the gross turnover for the year exceeded the limits of turnover provided u/s 44AB of the Act. Accordingly penalty proceeding was initiated after considering the submissions of the assessee. Aggrieved by the penalty order, the assessee preferred an appeal before the Ld. CIT(A) but on the dates of hearing, the assessee neither appeared nor filed any written submission and accordingly ld. CIT(Appeals) confirmed the levy of penalty by way of a speaking order. Being aggrieved by the order of CIT(Appeals) the assessee filed an appeal before the Hon’ble ITAT Kolkata.
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It is very knowledgeable, please give some analysis upon Odisha High Court judgement
Very Insightful!! 👍🏻
what an insightful analysis