TaxTMI 
TaxTMI 
2025 (2) TMI 1900
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....nging the penalty u/s. 271B of the Act. 2. Briefly stated the facts of the case are that the assessee has deposited cash in his various bank accounts of Rs. 7,81,70,435 including cash of Rs. 12,03,000 deposited during the demonetisation period. 3. The assessee has also not filed return of income u/s. 139(1). The assessment was completed u/s. 144 of the Act on 04.09.2019 determining total income at Rs. 62,53,640 on estimate basis on the total turnover and computed the income @ 8% of the total bank deposits. The ld. Pr.CIT exercised his power u/s. 263 and observed that the order passed by the AO u/s. 144 dated 04.09.2019 is erroneous and prejudicial to the interests of the revenue observing that the AO has ignored certain things which w....
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....assessee is liable for penalty u/s. 271B. Since the turnover is more than Rs. 2 crores, therefore provisions of section 44AD will not apply. As per the VAT return, the turnover was determined at Rs. 4,87,86,321 inclusive of VAT of Rs. 6,49,601. The AO computed the income of Rs. 38,50,937. The AO applied 8% net profit rate on the turnover of Rs. 4,81,36,720 excluding VAT and he also made other additions and assessed income at Rs. 53,61,606. The AO passed penalty order u/s. 271B on 15.09.2023. He relied on judgment mentioned in his order and distinguished the case law relied by the ld. counsel. He also relied on the Karnataka High Court judgment in the case of CIT v. S.C. Naregal, 200 Taxman 17 [2011] in which it has been held that where acco....
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....of debtors, all these are impossible without maintaining any ledger books for the debtors, creditors and for expenses. The AO has analysed the written submissions and assessee has himself admitted that he is not able to explain source of deposits of Rs. 12,03,000 and he has not maintained proper books of account inspite of having turnover above the limits as per section 44AA of the Act. As per submissions of the assessee the maintenance of improper books of account show that there is something maintained by the assessee and as per section 2(12A) books of account has been defined which includes ledgers, day books, cash books, account books and other books. Other books has not been separately defined in the provisions of the Act. But in the p....
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....red to maintain books of accounts and get the accounts audited which the assessee has failed to do so. The assessee has filed VAT returns and turnover has been arrived at Rs. 4,81,36,720 excluding VAT. Therefore we find substance in the argument of the ld. DR. The AO has also computed the profit under Chapter IVD - Profits & gains of business or profession applying 8% net profit on the turnover computed by the assessee. Without maintaining books of account to arrive at the turnover is not possible. The consequential order has been passed u/s. 144 r.w.s 263 of the Act. On going through section 2(12A) of the Act, other books are also part of the books of account. The assessee has produced the list of debtors. The assessee has arrived at the t....