Case Law Details
Bhawani Shankar Gupta Vs ITO (ITAT Jaipur)
ITAT Jaipur held that once the penalty is levied for non-maintenance of book of accounts, there cannot be further default for not getting the same audited as required u/s 44AB of the Act.
Facts- During the year, assessee is engaged in the business of trading bangles and other artificial accessories and shown gross receipt of Rs.55,14,602/- and declared net profit u/s 44AD for an amount of Rs.4,42,314/-. During the year, it is found that assessee has also made transactions of shares and not disclosed the same in his return of income. During the proceedings, assessee was asked to furnish complete details of share transactions. After examination of details filed it is found that assessee has made transactions in various segments and made total sales of Rs. 51,49,169/-. Therefore, assessee has made two business viz trading of bangles and share. Thus, the total turnover of both business of Rs.1,06,63,771/-.
AO observed that the assessee has violated the provision of section 44AB of I.T. Act, 1961, hence, penalty proceedings u/s 271B was initiated while finalizing the assessment proceedings and show cause notice was issued.
CIT(A) also confirmed the levy of penalty. Being aggrieved, the present appeal is filed.
Please become a Premium member. If you are already a Premium member, login here to access the full content.
Author Bio
