TaxTMI 
TaxTMI 
2018 (2) TMI 170
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....ces of the case the Learned CIT(A) has factually and legally erred in confirming the penalty of Rs. 25,000/- levied by the ld. AO u/s 271A of the Act without appreciating the facts of the case in right perspective and also ignoring the facts discussed in detail in the written submission submitted during the course of appeal proceedings. Thus, the penalty so levied and confirmed is bad in law and deserves to be deleted summarily. 2. The appellant craves to add, amend or withdraw any of the ground of appeal either before or at the time of hearing of appeal." 2. The assessee filed his return of income on 29.03.2011 declaring total income of Rs. 1,53,110/-. The assessee in his computing of income stated to have his own dairy busines....
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.... the sale of the leftover milk on the spot. Having considered such nominal volume and 'casual ' receipts, the total sales of the milk were estimated at Rs. 2,65,000/- approximately i.e. about Rs. 2,00,000/- from 'monthly customers' and Rs. 65,000/- from sales made on the spot in 'casual manner'. As the appellant is basically a villager and an agriculturist so he was totally ignorant about the procedure and implications of maintaining records in respect of such measer and casual receipts. Accordingly he did not keep record of his income and estimated the same on the basis of monthly sales to few parties and casual sales made on the spot. From these figures it would be noted that the appellant was a very small timer and had hardly turn-over o....
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....he Act. Ignoring such 'bona-fide failure' on the part of the appellant, the Id. AO had initiated the penalty proceedings u/s 271A of the Act and imposed a penalty or Rs. 25,000/- vide order dated 16.1.2013. The penalty so imposed is assailed on the following counts: (i) The appellant is an agriculturist and a villager. He did not do any regular business' (ii) 'Selling of milk' was his part time job done on casual basis with a view to supplement his income b\ selling the surplus milk of his animals. Thus it is was not his regular business activity. (Hi) As the appellant is not a *regular businessman ' so he is totally unaware of the legal obligations of maintaining the prescribed books or record u/s 44AA of the Act....
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....y." 4. On the other hand, ld. DR has relied upon the orders of the authorities below. 5. We have considered the rival submissions as well as relevant material on record. We find that the assessee is earning the income by selling of milk though basically the assessee is an agriculturist having agricultural land. The assessee is having its own cows and Buffalos and thereafter, the sale of milk is not a regular business in true. The assessee has explained the reasons for not maintaining the books of accounts as assessee is basically an agriculturist and carrying out agricultural operations apart from the selling milk from the animal kept by the assessee. We find that the explanation of the assessee though may not be accepted as per the s....