TaxTMI 
TaxTMI 
2020 (1) TMI 814
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....1961 (here-in-after referred to as "the Act") dated 20/01/2017 relevant to Assessment Year (A.Y) 2014-15. The assessee has raised the following grounds of appeal: 1 The learned A.O has erred in law and on facts in upholding penalty of Rs. 1,50,000/- imposed u/s.271B for non audit books of accounts u/s.44AB without properly appreciating the fact and penalty reply of the appellant. 2 On facts no penalty u/s.271B ought have been levied as a. Assessee has not maintained books of accounts in normal course of business. b. He was under bonfide belief that for share transaction carried out books of accounts are not required to be maintained. a. The return income has been accepted under section 143(3) ....
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....oss account observed that the assessee has made sales for Rs. 5,46,75,327.00 and purchase for Rs. 5,03,86,168.00 with respect to the shares whereas the total turnover was Rs. 5,54,43,128.00 after including speculation profit of Rs. 6,85,423.00, F&O Profit of Rs. 56,128.00 and Dividend Income of Rs. 26,250.00. 3.2 Thus the AO was of the view that the assessee was required to get her books of account audited u/s section 44AB of the Income Tax Act. 3.3 The AO further noted that the assessee filed her return of income in form-2 (for individual and HUF not having business income) whereas the same should have been filed in requisite form-4 as the assessee was having the business transactions. 3.4 The AO accordingly issued show cause noti....
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....levied the penalty u/s 271B of the Act for not getting the books of account audited and filing the audit report on or before the specified date. 5. Aggrieved assessee preferred an appeal to the Ld. CIT-A. The assessee reiterated the submission as made before the AO. The assessee also submits that the AO during the assessment proceedings called for the books of account. Therefore she prepared the books of account to substantiate the loss on share transaction which has been reflected from the broker's global statement. 6. However the Ld. CIT-A observed that the assessee was required to get her books of account audited u/s 44AB of the Act which is not done so. Therefore the Ld. CIT-A upheld the order of the AO. Being aggrieved by the ....
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....books of accounts. However during the course of assessment proceedings assessee prepared her books of account and got audited from accountant under the provision of section 44AB of the Act. The books of accounts, which were subsequently audited, prepared by the assessee during the assessment proceedings were accepted by the AO therefore no penalty was levied under section 271A of the Act. However, the AO levied the penalty for not furnishing the audited report in form 3CD in time under section 271B of the Act. Never the less, it is important to note that admittedly there was the loss from the transactions of purchase and sale of shares and there was the substantial compliance on the part of the assessee for getting the accounts audited. Mor....