No Penalty under Section 271A for Maintained Books of Account

Suresh Sharma Vs ITO (ITAT Bangalore) Introduction: In a significant ruling, the Income Tax Appellate Tribunal (ITAT) Bangalore held that the initiation of penalty proceedings under Section 271A of the Income Tax Act is not applicable if the assessee has properly maintained the Books of Account. The case involved the appellant, Suresh Sharma, contesting the order passed under section 271A read with Section 44AA of the Act, which imposed a penalty for the failure to maintain books of accounts. Analysis: The appeal, filed by the assessee, argued that he had maintained regular books of account fo...