2025 (5) TMI 618

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....1D of the Income-tax Act, 1961 (hereinafter referred to as "the Act") dated 04.01.2022 by the Assessing Officer, NFAC, Delhi (hereinafter referred to as "ld. AO"). ITA No. 4686/Del/2024 for AY 2012-13 2. The assessee has raised the following grounds of appeal:- "That on the facts and in the circumstances of the case and in law the Ld. CIT (A) at NFAC erred in confirming the order imposing penalty under section 271A of the Act 1961 holdings the assessee guilty of concealment of income. The above action being arbitrary, fallacious, unwarranted and illegal must be quashed with directions for appropriate relief." 3. We have heard the rival submissions and perused the material available on record. The statement of facts as mentioned by th....

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....s also claimed deduction u/s 80P of the Act which was duly granted by the ld AO in the assessment. While this is so, without mentioning any reason, the ld AO simply initiated penalty proceedings u/s 271A of the Act on the ground the assessee had not maintained books of account u/s 44AA of the Act. This notice culminated in the levy of penalty u/s 271A of the Act for Rs. 25,000/- which was also upheld by the ld NFAC. 5. We are unable to comprehend ourselves to accept to the aforesaid levy of penalty u/s 271A of the Act for the simple reason that when books of account are not maintained by the assessee according to the lower authorities, then how the deduction claimed by the assessee u/s 80P of the Act was granted? This itself becomes a clin....