Maintenance of books of accounts: loose-sheet records that enable manipulation may attract penalty and prosecution under tax law. Section 44AA requires proper maintenance of books of accounts; while computerized daily records may be kept in loose sheets and bound periodically, loose-sheet recordkeeping used solely to enable subsequent manipulation to evade tax is objectionable. During surveys and searches officials should scrutinise record form and, where loose records are deliberately maintained to facilitate tax evasion, initiate penalty proceedings and consider criminal prosecution as deterrent action.
Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
Provisions expressly mentioned in the judgment/order text.
Maintenance of books of accounts: loose-sheet records that enable manipulation may attract penalty and prosecution under tax law.
Section 44AA requires proper maintenance of books of accounts; while computerized daily records may be kept in loose sheets and bound periodically, loose-sheet recordkeeping used solely to enable subsequent manipulation to evade tax is objectionable. During surveys and searches officials should scrutinise record form and, where loose records are deliberately maintained to facilitate tax evasion, initiate penalty proceedings and consider criminal prosecution as deterrent action.
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