Penalty imposed on Doctor For Non-Maintenance of Books under Section 271A

Fact and Issue of the case

This is an appeal filed by the Assessee directed against the order of ld.Commissioner of Income Tax(Appeals)-1, Pune, Appeal Number.PN/CIT(A)1/DCIT,Cir.1(2)/PN/508/16-17 dated 12.01.2018 for the Assessment Year 2013-14.

The authorities erred in facts and circumstances of the case and in law in levying penalty of Rs.25000/- u/s 271A when the assessee has maintained proper books of accounts. Just and proper relief be granted to the assessee in this respect.

As emanating from the order of the Ld.CIT(A), are that the assessee is a Doctor by a profession. The professional receipts of the assessee during the year was of Rs.15,39,837/-. As per provisions of section 44AA of the Act, the appellant was required to maintain books of accounts as mentioned in the Income Tax Rules 6F. During the assessment proceedings, the Assessing Officer(AO) observed that the appellant had not maintained books of accounts. Therefore, the AO initiated penalty under section 271A of the Act. During the penalty proceedings, the appellant was given opportunity. However, the appellant failed to file submission during the penalty proceedings. The AO levied penalty of Rs.25,000/- under section 271A of the Act. The assessee filed an appeal before the ld.CIT(A). The ld.CIT(A) upheld the penalty order passed by the AO.

Being aggrieved with the order of the ld.CIT(A), the assessee filed appeal before this Tribunal. The ld.Authorised Representative(ld.AR) submitted that the appellant has been maintaining cash book and petty cash book which were submitted before the AO. A person carrying on medical profession shall, in addition to the books of account and other documents specified in sub-rule (2).

Observation of the Court

The ld.Departmental Representative (ld.DR) for the Revenue relied upon the order of ld.CIT(A) and order passed by the AO.

As per Income Tax Rule 6F the appellant i.e. Doctor has to maintain the books of accounts mentioned in the Rule 6F. The ld.AR submitted that the appellant is maintaining cash book and petty cash book. Even before the ld.CIT(A) the appellant had submitted that the appellant maintained cash book and petty cash, thus, it is a fact that the appellant had failed to maintain books of accounts mentioned in the Rule 6F. The Rule 6F(3) specifically provides for additional books and documents to be maintained by Medical Professionals in addition to their regular books mentioned in Sub-Rule 2 of Rule 6F. Thus, medical professionals has to maintain daily case register and inventory of the medicine stock. On a specific enquiry from the Bench, the ld.AR could not answer the question whether appellant Doctor had maintained the daily case register and medicine stock register. Thus, it is a fact that appellant Doctor had failed to maintain books of accounts. Therefore, the appellant is liable for penalty under section 271A of the Act for non-maintenance of the books of accounts. No reason has been provided for non-maintenance of the books. Therefore, the penalty order under section 271A is hereby confirmed.

In the result, appeal of the assessee is dismissed.