SURAJMAL PARSURAM TODI Vs. COMMISSIONER OF INCOME TAX

JUDGEMENT

(1.) AT the instance of the assessee, the following question has been referred by the Income-tax Appellate Tribunal under Section 256(1) of the Income-tax Act, 1961 (for short, "the Act"), for opinion of this court :

(2.) THE facts for answering the question may be stated as follows ;

(3.) MR. R.K. Joshi submits that it is an admitted fact that the assessee did not maintain any books of account and, therefore, the question of the books of account being audited as per the provisions of Section 44AB docs not arise. Therefore, the Tribunal erred in law in holding that the assessee was guilty of penalty under Section 27113 of the Act. On the other hand, Dr. Saraf, learned special counsel appearing on behalf of the Revenue, submits that maintenance of hooks of account is one of the conditions as contemplated by Section 44AA and Section 44AB contemplates audit of account and penalty is provided under Sections 271A and 27113 of the Act,