After providing all information asked by ITO production of Books of Accounts under sec 44AD is not compulsory

Last updated: 01 June 2012

Court :
INCOME TAX APPELLATE TRIBUNAL

Brief :
The brief facts of this issue are that while doing the scrutiny assessment AO observed that “the assessee firm vas engaged in the business of developing and promoting. During the course of hearing, Sri Chakraborty, A/r of the firm, furnished various information as and when called for, however, he did not produce the books of accounts whenever called for. He was requested to produce books of accounts during the course of hearing on 14- 10-09, 1611-09, 25-11-2009 and 14-12-09. But everytime he took the plea of producing the same at the time of next hearing. Finally, during the course of hearing on 22-12-09, he filed a letter stating that the firm was covered by the provisions of section 44AD of the I.T.Act and maintenance of books was not mandatory. It was specifically asked whether the firm was maintaining books. In reply, he stated that requisition of hooks from an assessee covered u/s 44AD was not necessary. Then he was asked as to wherefrom he had filed all the information and what was the basis of the information filed by him, if books of accounts were not maintained. He stated that the information was kept for smooth running of the business but as the firm as covered u/s 44AD, production of books was not compulsory

Citation :
I.T.O., Ward-28(1), Kolkata. (APPELLANT) Versus- M/s.Mark Construction, Kolkata (PAN: AAHFM 4469 J) (RESPONDENT) C.O. No.28/Kol/2011 A/o ITA No.602/Kol/2011 Assessment Year: 2007-08 M/s. Mark Construction, Kolkata. (PAN: AAHFM 4469 J) (APPELLANT) Versus I.T.O., Ward-28(1), Kolkata. (RESPONDENT)