Books or books of accounts

[DEV KUMAR KOTHARI]

From Income-tax Act 1961 Definitions. 2. In this Act, unless the context otherwise requires,— xxxx [(12A) 'books or books of account' includes ledgers, day-books, cash books, account-books and other books, whether kept in the written form or as printouts of data stored in a floppy, disc, tape or any other form of electro-magnetic data storage device;] From the above definition it can be construed that soft copies or data stored in computer etc. are not books or books of account. Only print outs can be considered as books or books of account. This is from use of words 'whether kept in the written form or as printouts of data ...' Readers views are invited. From government- If such an interpretation is not intended, then there should be a suitable amendment as soon as possible and not after the courts so decide.

[Mukesh Kumar]

Section 4 of Information Technology Act, 2000 which is overriding provision states that, "4. Legal recognition of electronic records.- Where any law provides that information or any other matter shall be in writing or in the typewritten or printed form, then, notwithstanding anything contained in such law, such requirement shall be deemed to have been satisfied if such information or matter is- (a) rendered or made available in an electronic form; and (b) accessible so as to be usable for a subsequent reference."

AI Summary

Legal recognition of electronic records ensures electronic books satisfy statutory writing and recordkeeping requirements. Whether soft copies fall within books or books of account is disputed because the tax definition expressly mentions 'printouts of data'. A narrow reading would exclude electronic-only records, but the Information Technology regime treats electronic records that are accessible and usable for subsequent reference as satisfying statutory writing requirements, so electronically stored ledgers and data can function as books of account if maintained and retrievable; legislative clarification is advisable to remove ambiguity.