271a

This query is : Resolved

Jayant Shaligram (Querist)
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24 December 2016 Return of my Advocate friend was filed by his consultant inadvertently ticking, he is not required to maintain books u/s 44AA. This friend does maintain Books since he started his profession more than 25 years ago. During the course of assessment proceedings, this mistake was acknowledged in writing by the consultant and details submitted as asked for. Order also passed adding only 20% of depreciation for personal use. In the order the AO claimed that the assesee has not maintained books and whatever produced before him was an after thought.
Now the AO has initiated penalty proceedings u/s 271A.
Suggestion requested as how to proceed in this matter.
Can we start from defective return theory? We surely can produce last 25 years books with current date updation.

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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25 December 2016 Defective return theory will not work out as AO has passed assessment order. Contest the penalty levy and take up the case under appeal.

Jayant Shaligram

Jayant Shaligram (Querist)
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25 December 2016 Thanks. 271A proceedings have started separately. 143(3) is passed. I have to reply to the separate notice.

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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25 December 2016 Reply to the notice and contest the levy.

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