2023 (4) TMI 561

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....the Income Tax Act, 1961 [the Act] for the AY 2017-18. 2. Briefly stated the facts are that the assessee is an individual filed her return of income on 7/11/2017 admitting a total income of Rs. 3,76,650/- for the AY 2017-18. Subsequently, the case was selected for scrutiny under CASS for the issue of "cash deposits during the year". Subsequently notice U/s. 143(2) of the Act dated 24/9/2018 was issued and served on the assessee. Subsequently, the notice U/s. 142(1) dated 23/7/2019 and 9/10/2019 were issued and served on the assessee electronically. Due to change in the incumbent another notice U/s. 142(1) dated 21/10/2019 was issued and served on the assessee. Since the assessee did not comply with the notices, the Ld. AO initiated proceed....

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....of the assessee on the ground of penalty U/s. 270A raised by the assessee for Rs. 4,44,130/-. Aggrieved by the order of the Ld. CIT(A)-NFAC, the assessee is in appeal before the Tribunal. 3. The assessee has raised the following grounds in her appeal: "1. The order of the Ld. CIT (A) is contrary to the facts and also the law applicable to the facts of the case. 2. The Ld. CIT(A) is not justified in sustaining the penalty of Rs. 4,44,130/- levied by the assessing officer u/s. 270A of the Act. 3. Any other grounds may be urged at the time of hearing." 4. At the outset, the Ld. AR submitted before us the same argument as it is a mistake done by the assessee's Accountant by wrongly declaring the turnover at Rs. 58,22,000/- while admi....

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....ly depended on the local Accountant at Nandigama. The Ld. AR also submitted that the Ld. CIT(A)-NFAC has not considered the above fact. 5. We have heard the rival contentions and perused the material available on record and the orders of the Authorities below. Admittedly, there is a suppression of turnover by the assessee while filing her return of income by declaring the income of Rs. 3,76,650/- U/s. 44AD of the Act. Section 44AD is a presumptive taxation where 8% of the turnover is taxed as income. It is not acceptable by us that the assessee's Accountant has mis-reported the turnover by reverse working. Further, we are also unable to understand when the profits are declared under presumptive basis, why the Profit & Loss Account was prep....