2023 (2) TMI 748

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....t Rs. 25,000/- ii. That on estimate basis income was estimated Rs. 4,59,800/- as against Rs. 31,177/- shown. iii. That the authority below was not justified in imposing penalty u/s 271A to a petty dairy income. iv. That however assessed tax has also been paid." 3. The assessee is an individual and did not file any return of income under section 139 of the Income Tax Act for the year under consideration. Since there were deposits in the bank accounts of the assessee during the year under consideration to the tune of Rs. 5,19,42,482/-, therefore, the AO issued notice under section 142(1) on 02.01.2018 calling the assessee to file the return of income on or before 01.02.2018. The assesee did not respond to the notice issued under se....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....as not more than the minimum limit provided under the said provision. The assessee submitted that the income from Dairy business was only Rs. 31,177/- and the balance was agriculture income of Rs. 15,70,000/-. The AO accepted the agriculture income at Rs. 11,10,200/- for want of proof of the balance agriculture income. Hence, the difference was added by the AO to the income from Dairy business. The assessee pleaded that the penalty levied by the AO may be deleted. The CIT(A) was not impressed with the reply of the assessee and confirmed the penalty levied by the AO under section 271A of the Income Tax Act. 4. Before the Tribunal, the learned AR of the assessee has submitted that the business income of the assessee was only Rs. 31,177/- and....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....thorities below. 6. I have considered the rival submissions as well as relevant material on record. The ACIT while passing the order under section 271A of the Income Tax Act has given the reasons for levy of penalty in para 3 to 5 as under:- "3. The issue against which penalty proceedings u/s 271A was initiated during the assessment proceedings is discussed as under.- The assessee has not filed return of income u/s 139 for AY 2017-18. During the assessment proceedings, the assessee has filed manual return of income declaring total income at Rs. 31,177/- and net agriculture income of Rs. 15,70,200/-. The manual return submitted by the assessee was treated as Invalid return. During the assessment proceedings, it was noticed from the Ban....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....e Act. The assessee has not furnished any reasonable cause which prevented him from doing so. Thus, the assessee has defaulted in maintaining books of accounts and other documents as per section 44AA of the Act for the Assessment Year under consideration and hence, liable for penalty u/s. 271A of the IT Act. 5. In view of the above facts, it is held that this is a fit case for levy of penalty u/s.271A of the Act. Accordingly, penalty u/s 271A of Rs. 25,000/- is hereby levied. Demand notice is issued accordingly." 7. Thus, the ACIT has taken the total income assessed at Rs. 6,55,570/- while passing the assessment order under section 144 and as well as deposit of Rs. 5,19,42,482/- in the bank as the basis for initiating the penalty under....