ITAT confirms Income Tax Penalty against Doctor for not maintaining daily case register and Inventory of Medicine Stock [Read Order]

The Pune bench of the Income Tax Appellate Tribunal (ITAT) has recently confirmed a penalty issued under section 271A of the Income Tax Act, 1961 on grounds of not maintaining books of accounts as mentioned in the Income Tax Rules 6F.

The assessee is a Doctor by a profession. The professional receipts of the assessee during the year were 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. the Assessing Officer noted that the assessee did not satisfy the conditions and therefore, imposed a penalty under section 271A of the Act.

The Tribunal bench comprising Shri S.S.Viswanethra Ravi, JM and Dr. Dipak P. Ripote, AM has held that as per Income Tax Rule 6F the appellant i.e. Doctor has to maintain the books of accounts mentioned in Rule 6F. The ld.AR submitted that the appellant is maintaining a cash book and petty cash book.

Confirming the penalty order, the Tribunal held that “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 Rule 6F. 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 have to maintain a daily case register and inventory of the medicine stock. On a specific inquiry from the Bench, the ld.AR could not answer the question of whether the appellant Doctor had maintained the daily case register and medicine stock register. Thus, it is a fact that the 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 the non-maintenance of the books. Therefore, the penalty order under section 271A is hereby confirmed.”

To Read the full text of the Order CLICK HERE

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