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Penalty u/s 271A

Shivani Mittal (Practice) (425 Points)

29 June 2014

Penalty for failure to keep, maintain or retain books of account, documents etc :
Sec 271A
If any person fails to keep and maintain any such books of account and other documents as required by section 44AA or the rules made thereunder, in respect of any previous year or to retain such books of account and other documents for the period specified in the said rules, the Assessing Officer or the Commissioner (Appeals) may direct that such person shall pay, by way of penalty a sum of twenty-five thousand rupees.

Hence, a penalty of Rs. 25000/- u/s 271A can be levied for two reasons :
1. For non maintenance of books of accounts, or

2. For not retaining such books of accounts for the specified period i.e 6 years from the end of the relevant assessment year as per Rule 6F(5) of Income Tax Rules.

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1 Replies

saket shrirao (article) (33 Points)
Replied 25 April 2017

Hey.This is regarding my friends taxability.Income is below BEL.He is a doctor employed by a hospital.He received Professional Income as TDS u/s 194J gets deducted.His Income for F.Y-2015-16 was Rs 1,90,000.He filed return of Income claiming refund of Rs.19000.But he did not maintain BOAs and selected the option NO in the Income tax Form.Now he received a defective notice stating that Balance Sheet and P/L Must be filed and any changes done apart from B/S AND P/L,will render the Return Invalid.He did not file Return u/s 139(9),as he had to change one field in the ITR Form of Sec 44AA(making it yes) .If he would have done that,then his Income Tax Return would have been Invalid(as mentioned in the notice). He drafted this reply to Bangalore CPC. Bangalore CPC said YOUR REPLY HAS NOT BEEN TAKEN INTO CONSIDERATION.Now will he receive Penalty Notice u/s 271A for Rs.25,000 or should he wait for the CPCs further reply?