Case Law Details
Gurukrupa Developers Vs DCIT (ITAT Ahmedabad)
The learned AR before us inter-alia submitted that the books and other supporting documents of the assessee were impounded by the search team. Therefore, the assessee could not maintain proper books of accounts due to the reason beyond its control. When proper books of account were not available, the question of getting the same audited in prescribed time limit does not arise. Therefore, there cannot be any penalty under section 271B of the Act for not maintaining the books of accounts.
Admittedly the books and other material were not available with the assessee due to seizure made by the search team in the search proceeding dated 2nd July 2012. Therefore, the assessee in our considered view at the most can be held as defaulter for not maintaining the books of accounts which attracts the penalty under the provisions of section 271A of the Act. But the authorities below have not initiated any penalty under section 271A of the Act for not maintaining the books of accounts.
FULL TEXT OF THE ORDER OF ITAT AHMEDABAD
The captioned appeal has been filed at the instance of the Assessee against the order of the Learned Commissioner of Income Tax (Appeals)-12, Ahmedabad, dated 15/11/2018 arising in the matter of penalty order passed under s. 271B of the Income Tax Act, 1961 (here-in-after referred to as “the Act”) relevant to the Assessment Year 2012-2013.
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