Section 44AA of the Income Tax Act

Income-tax Act, 2025: s.62

Section 44AA of the Income-tax Act, 1961 corresponds to section 62 (Maintenance of books of account) of the Income-tax Act, 2025.

Read section 62 of the 2025 Act

Correspondence checked against the ICAI tabular mapping of the two Acts and the BharatTax.co section commentary.

The decision most relied on for Section 44AA is Surajmal Parsuram Todi v. CIT (222 ITR 691), cited in 114 of the 447 judgments on BharatTax that turn on this section.

Leading authorities on Section 44AA

Surajmal Parsuram Todi v. CIT
222 ITR 691 · 1996 · High Court
114
citing judgments

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.

CIT v. S.K. Gupta & Co.
322 ITR 86 · 2010 · High Court
110
citing judgments

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.

CIT v. Bisauli Tractors
299 ITR 219 · 2008 · High Court
81
citing judgments

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.

PCIT v. Delhi Airport Metro Express (P) Ltd.
398 ITR 8 · 2017 · High Court
63
citing judgments

The Principal Commissioner of Income Tax (PCIT) cannot send a matter back to the Assessing Officer for a fresh assessment under Section 263(1) without first conducting an inquiry himself, especially if the basis for revision is the AO's alleged lack of inquiry. If the AO has made an inquiry and taken a plausible view, the PCIT must undertake fresh verification to demonstrate the AO's conclusion is erroneous and prejudicial.

Science Corp. India (P) Ltd. v. DCIT
163 Taxmann.com 693 · Reported
56
citing judgments

An order dismissing all grounds of appeal based on a single issue, in violation of Section 250(6), is an unlawful adjudication and renders the order irregular, making it a fit case for remand.

Mineral Development Corporation Ltd. v. ITAT
314 ITR 14 · High Court
55
citing judgments

An appellate authority cannot travel beyond the provisions of law when adjudicating matters, as doing so is barred by jurisdiction and renders the action otiose.

ACIT v. Prakash I. Shah
115 ITD 167 · 2008 · ITAT
51
citing judgments

The department cannot improve upon the Assessing Officer's case by changing the basis of additions without issuing a show cause notice to the assessee.

Bharat Construction Co. v. ITO
153 CTR 414 · 1999 · High Court
49
citing judgments

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.

Sandeep Chandak & Ors. v. CIT
55 ITR (Trib) 209 · 2017 · ITAT
49
citing judgments

The penalty provisions under Section 271AAB of the Income Tax Act are not mandatory, as indicated by the use of the word 'may' instead of 'shall', giving the Assessing Officer discretion whether to initiate and impose the penalty.

1) Bhagwan Sahai Sharma v. Dy. CIT
174 Taxmann.com 273 · 2025 · High Court
23
citing judgments

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.

Judgments on Section 44AA

M/S. Agarwal Transport Corporation, Cuttack vs. ITO, Ward-2(1), Cuttack

In the result, both appeals of the assessee are allowed

ITA 407/CTK/2018[2013-14]Status: DisposedITAT Cuttack16 Dec 2019AY 2013-14

Bench: Shri C.M. Garg, Jm & Shri L.P. Sahu, Am आयकर अपीऱ सं./Ita Nos.406&407/Ctk/2019 (नििाारण वषा / Assessment Years :2012-2013 & 2013-2014) M/S Agarwal Transport Corp. Vs. Ito, Ward-2(1),Cuttack At: Bagha Mangala Lane, Mangalabag, Po: Buxi Bazar,Cuttack-753001 स्थायी लेखा सं./Pan No. : Aaffa 2795 K (अऩीलाथी /Appellant) (प्रत्यथी / Respondent) : ननधाारिती की ओर से /Assessee By : Shri S.N.Sahu & Shri Somnath Sahu, Advocates िाजस्व की ओर से /Revenue By : Shri Subhendu Dutta, Dr सुनवाई की तािीख / Date Of Hearing : 28/11/2019 घोषणा की तािीख/Date Of Pronouncement : 16/12/2019 आदेश / O R D E R Per L.P.Sahu, Am: These Two Appeals Filed By The Assessee Against The Order Of Cit(A), Cuttack, Dated 07.09.2018 & 31.08.2018 For The Assessment Years 2012-2013 & 2013-2014. 2. The Sole Issue Involved In Both The Appeals Of The Assessee Is With Regard To Confirming The Penalty Levied U/S.271A Of The Act. 3. Brief Facts Of The Case Are That The Assessee Derives Income From Execution Of Transportation Works In The Name & Style Of ‘M/S Agarwala Transport’ & Filed Its Return Of Income On 27.09.2012 For The A.Y.2012-2013 Declaring Total Income At Rs.11,61,300/-. Similarly, The Assessee Filed Its Return Of Income For A.Y.2013-2014 On 21.09.2013 Declaring Total Income At Rs.10,67,380/-. Both The Cases Of The Assessee

For Appellant: Shri S.N.Sahu &For Respondent: Shri Subhendu Dutta, DR
Section 145(3)Section 271ASection 44A

M/S. Agarwal Transport Corporation, Cuttack vs. ITO, Ward-2(1), Cuttack

In the result, both appeals of the assessee are allowed

ITA 406/CTK/2018[2012-13]Status: DisposedITAT Cuttack16 Dec 2019AY 2012-13

Bench: Shri C.M. Garg, Jm & Shri L.P. Sahu, Am आयकर अपीऱ सं./Ita Nos.406&407/Ctk/2019 (नििाारण वषा / Assessment Years :2012-2013 & 2013-2014) M/S Agarwal Transport Corp. Vs. Ito, Ward-2(1),Cuttack At: Bagha Mangala Lane, Mangalabag, Po: Buxi Bazar,Cuttack-753001 स्थायी लेखा सं./Pan No. : Aaffa 2795 K (अऩीलाथी /Appellant) (प्रत्यथी / Respondent) : ननधाारिती की ओर से /Assessee By : Shri S.N.Sahu & Shri Somnath Sahu, Advocates िाजस्व की ओर से /Revenue By : Shri Subhendu Dutta, Dr सुनवाई की तािीख / Date Of Hearing : 28/11/2019 घोषणा की तािीख/Date Of Pronouncement : 16/12/2019 आदेश / O R D E R Per L.P.Sahu, Am: These Two Appeals Filed By The Assessee Against The Order Of Cit(A), Cuttack, Dated 07.09.2018 & 31.08.2018 For The Assessment Years 2012-2013 & 2013-2014. 2. The Sole Issue Involved In Both The Appeals Of The Assessee Is With Regard To Confirming The Penalty Levied U/S.271A Of The Act. 3. Brief Facts Of The Case Are That The Assessee Derives Income From Execution Of Transportation Works In The Name & Style Of ‘M/S Agarwala Transport’ & Filed Its Return Of Income On 27.09.2012 For The A.Y.2012-2013 Declaring Total Income At Rs.11,61,300/-. Similarly, The Assessee Filed Its Return Of Income For A.Y.2013-2014 On 21.09.2013 Declaring Total Income At Rs.10,67,380/-. Both The Cases Of The Assessee

For Appellant: Shri S.N.Sahu &For Respondent: Shri Subhendu Dutta, DR
Section 145(3)Section 271ASection 44A