Section 271A of the Income Tax Act

A penalty under Section 271B for failure to get accounts audited cannot be levied if a penalty under Section 271A has already been imposed for non-maintenance of books of account.

If a penalty is levied under Section 271A for failure to maintain books of account, then a separate penalty under Section 271B for failure to get accounts audited under Section 44AB cannot also be levied.

Penalty proceedings are distinct from assessment proceedings. A penalty cannot be levied solely on the basis of reasons given in the original order of assessment, and the assessee is not barred from challenging assessment findings during penalty proceedings.

If an assessee has not maintained books of accounts, the question of getting those accounts audited under Section 44AB does not arise, and therefore, a penalty under Section 271B for failure to get accounts audited cannot be levied. Non-maintenance of books is separately punishable under Section 271A.

Whether an assessee has shown 'reasonable cause' under Section 273B, particularly in the context of penalties under Section 271D for violations of Section 269SS, is a question of law involving a legal inference from primary facts. Penalties under Section 271D are not leviable if reasonable cause is established, even for journal entries, provided transactions are genuine and bona fide.

When an assessee fails to maintain books of account, resulting in a confirmed penalty under section 271A, no additional penalty under section 271B can be levied for the failure to get accounts audited under section 44AB, as there are no accounts to audit.

The Delhi High Court's decision in Centrica India Offshore (P.) Ltd. v. CIT is often cited as an unfavourable precedent in subsequent judgments, particularly in cases involving international taxation and transfer pricing.

Books of account include electronic records and are maintained to provide credible financial data for tax returns and to determine income. Penalty under section 271B for not getting accounts audited is applicable only when accounts are maintained, whereas section 271A applies if no accounts are maintained at all.

Reassessment proceedings initiated for AY 2015-16 after April 1, 2021, are barred by limitation and invalid, as per the amended provisions of the Finance Act, 2020.