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

Kolors Healthcare LLP, Hyderabad vs. ACIT., Central Circle-3(4), Hyderabad

In the result, the appeal of the assessee in ITA No

ITA 941/HYD/2024[2019-20]Status: DisposedITAT Hyderabad23 Jan 2025AY 2019-20

Bench: Shri Laliet Kumar & Shri Madhusudan Sawdiaआ. अपी.सं / Ita Nos.930 To 936/Hyd/2024 (निर्धारण वर्ष/Assessment Years:2013-14 To 2019-20) M/S. Kolors Healthcare India Pvt. Ltd., Hyderabad. Pan:Aadck8392B (Appellant) Vs. Asst. Commissioner Of Income Tax, Central Circle-3(4), Hyderabad. (Respondent) C.O. Nos.15 To 21/Hyd/2024 (In Ita Nos.930 To 936/Hyd/2024) (निर्धारण वर्ष/Assessment Years:2013-14 To 2019-20) (By Revenue) आ.अपी.सं / Ita Nos.937 To 941/Hyd/2024 (निर्धारण वर्ष/Assessment Years:2015-16 To 2019-20) M/S. Kolors Healthcare Llp, Hyderabad. Pan:Aaofk6305L (Appellant) Vs. Asst. Commissioner Of Income Tax, Central Circle-3(4), Hyderabad. (Respondent) C.O. Nos.22 To 26/Hyd/2024 (In Ita Nos.937 To 941/Hyd/2024) (निर्धारण वर्ष/Assessment Years:2015-16 To 2019-20) (By Revenue) निर्धारिती द्वारा/Assessee By: Shri P. Murali Mohan Rao, C.A. राजस्व द्वारा/Revenue By: Ms.K. Haritha, Cit-Dr सुनवाई की तारीख /Date Of Hearing: 04/12/2024 घोषणा की तारीख / Pronouncer G/Pronouncement: 23/01/2025 आदेश/Order Per Bench : All These Appeals Filed By M/S. Kolors Healthcare India Pvt. Ltd. (“Assessee") & M/S. Kolors Healthcare Llp & Cross Objections Filed By Revenue, Are Arising Out Of Separate Orders Of Learned Commissioner Of Income Tax (Appeals)-11, Hyderabad (“Ld. Cit(A)”) As Detailed Above. Since Identical Issues Are Involved In These Appeals & Cross Objections ("C.O.”), They Are Heard Together & Consolidated Order Is Being Passed For The Sake Of Convenience & Brevity.

For Appellant: Shri P. Murali Mohan Rao, C.AFor Respondent: Ms.K. Haritha, CIT-DR
Section 44A

Kolors Healthcare LLP, Hyderabad vs. ACIT, Central Circle-3(4), Hyderabad

In the result, the appeal of the assessee in ITA No

ITA 938/HYD/2024[2016-17]Status: DisposedITAT Hyderabad23 Jan 2025AY 2016-17

Bench: Shri Laliet Kumar & Shri Madhusudan Sawdiaआ. अपी.सं / Ita Nos.930 To 936/Hyd/2024 (निर्धारण वर्ष/Assessment Years:2013-14 To 2019-20) M/S. Kolors Healthcare India Pvt. Ltd., Hyderabad. Pan:Aadck8392B (Appellant) Vs. Asst. Commissioner Of Income Tax, Central Circle-3(4), Hyderabad. (Respondent) C.O. Nos.15 To 21/Hyd/2024 (In Ita Nos.930 To 936/Hyd/2024) (निर्धारण वर्ष/Assessment Years:2013-14 To 2019-20) (By Revenue) आ.अपी.सं / Ita Nos.937 To 941/Hyd/2024 (निर्धारण वर्ष/Assessment Years:2015-16 To 2019-20) M/S. Kolors Healthcare Llp, Asst. Commissioner Of Income Tax, Hyderabad. Vs. Central Circle-3(4), Pan:Aaofk6305L Hyderabad. (Appellant) (Respondent) C.O. Nos.22 To 26/Hyd/2024 (In Ita Nos.937 To 941/Hyd/2024) (निर्धारण वर्ष/Assessment Years:2015-16 To 2019-20) (By Revenue) निर्धारिती द्वारा/Assessee By: Shri P. Murali Mohan Rao, C.A. राजस्व द्वारा/Revenue By: Ms.K. Haritha, Cit-Dr सुनवाई की तारीख /Date Of Hearing: | 04/12/2024 घोषणा की तारीख / Pronouncer G/Pronouncement: 23/01/2025 आदेश/Order Per Bench : All These Appeals Filed By M/S. Kolors Healthcare India Pvt. Ltd. (“Assessee") & M/S. Kolors Healthcare Llp & Cross Objections Filed By Revenue, Are Arising Out Of Separate Orders Of Learned Commissioner Of Income Tax (Appeals)-11, Hyderabad (“Ld. Cit(A)") As Detailed Above. Since Identical Issues Are Involved In These Appeals & Cross Objections ("C.O.”), They Are Heard Together & Consolidated Order Is Being Passed For The Sake Of Convenience & Brevity.

For Appellant: Shri P. Murali Mohan Rao, C.AFor Respondent: Ms.K. Haritha, CIT-DR
Section 44A

Kolors Healthcare India Private Limited, Hyderabad vs. ACIT., Central Circle-3(4), Hyderabad

In the result, the appeal of the assessee in ITA No

ITA 935/HYD/2024[2018-19]Status: DisposedITAT Hyderabad23 Jan 2025AY 2018-19

Bench: Shri Laliet Kumar & Shri Madhusudan Sawdiaआ. अपील सं./Ita Nos.930 To 936/Hyd/2024 (निर्धारण वर्ष/Assessment Years:2013-14 To 2019-20) M/S. Kolors Healthcare India Pvt. Ltd., Hyderabad. Pan:Aadck8392B (Appellant) Vs. Asst. Commissioner Of Income Tax, Central Circle-3(4), Hydrabad. (Respondent) C.O. Nos.15 To 21/Hyd/2024 (In Ita Nos.930 To 936/Hyd/2024) (निर्धारण वर्ष/Assessment Years:2013-14 To 2019-20) (By Revenue) आ. अपील सं./Ita Nos.937 To 941/Hyd/2024 (निर्धारण वर्ष/Assessment Years:2015-16 To 2019-20) M/S. Kolors Healthcare Llp, Hydrabad. Pan:Aaofk6305L (Appellant) Vs. Asst. Commissioner Of Income Tax, Central Circle-3(4), Hydrabad. (Respondent) C.O. Nos.22 To 26/Hyd/2024 (In Ita Nos.937 To 941/Hyd/2024) (निर्धारण वर्ष/Assessment Years:2015-16 To 2019-20) (By Revenue) निर्धारिती द्वारा/Assessee By: Shri P. Murali Mohan Rao, C.A. राजस्व द्वारा/Revenue By: Ms.K. Haritha, Cit-Dr सुनवाई की तारीख /Date Of Hearing: 04/12/2024 घोषणा की तारीख / Pronouncement: 23/01/2025 आदेश/Order Per Bench : All These Appeals Filed By M/S. Kolors Healthcare India Pvt. Ltd. ("Assessee") & M/S. Kolors Healthcare Llp & Cross Objections Filed By Revenue, Are Arising Out Of Separate Orders Of Learned Commissioner Of Income Tax (Appeals)-11, Hydrabad ("Ld. Cit(A)") As Detailed Above. Since Identical Issues Are Involved In These Appeals & Cross Objections ("C.O.”), They Are Heard Together & Consolidated Order Is Being Passed For The Sake Of Convenience & Brevity.

For Appellant: Shri P. Murali Mohan Rao, C.AFor Respondent: Ms.K. Haritha, CIT-DR
Section 132Section 44A

Kolors Healthcare India Private Limited, Hyderabad vs. ACIT., Central Circle-3(4), Hyderabad

In the result, the appeal of the assessee in ITA No

ITA 934/HYD/2024[2017-18]Status: DisposedITAT Hyderabad23 Jan 2025AY 2017-18

Bench: Shri Laliet Kumar & Shri Madhusudan Sawdiaआ. अपील सं / Ita Nos.930 To 936/Hyd/2024 (निर्धारण वर्ष/Assessment Years:2013-14 To 2019-20) M/S. Kolors Healthcare India Pvt. Ltd., Hyderabad. Pan:Aadck8392B (Appellant) Vs. Asst. Commissioner Of Income Tax, Central Circle-3(4), Hyderabad. (Respondent) C.O. Nos.15 To 21/Hyd/2024 (In Ita Nos.930 To 936/Hyd/2024) (निर्धारण वर्ष/Assessment Years:2013-14 To 2019-20) (By Revenue) आ. अपील सं / Ita Nos.937 To 941/Hyd/2024 (निर्धारण वर्ष/Assessment Years:2015-16 To 2019-20) M/S. Kolors Healthcare Llp, Hyderabad. Pan:Aaofk6305L Vs. Asst. Commissioner Of Income Tax, Central Circle-3(4), Hyderabad. (Appellant) (Respondent) C.O. Nos.22 To 26/Hyd/2024 (In Ita Nos.937 To 941/Hyd/2024) (निर्धारण वर्ष/Assessment Years:2015-16 To 2019-20) (By Revenue) निर्धारिती द्वारा/Assessee By: Shri P. Murali Mohan Rao, C.A. राजस्व द्वारा/Revenue By: Ms.K. Haritha, Cit-Dr सुनवाई की तारीख /Date Of Hearing: 04/12/2024 घोषणा की तारीख / Pronouncement: 23/01/2025 आदेश/Order Per Bench : All These Appeals Filed By M/S. Kolors Healthcare India Pvt. Ltd. (“Assessee") & M/S. Kolors Healthcare Llp & Cross Objections Filed By Revenue, Are Arising Out Of Separate Orders Of Learned Commissioner Of Income Tax (Appeals)-11, Hyderabad ("Ld. Cit(A)") As Detailed Above. Since Identical Issues Are Involved In These Appeals & Cross Objections ("C.O."), They Are Heard Together & Consolidated Order Is Being Passed For The Sake Of Convenience & Brevity.

For Appellant: Shri P. Murali Mohan Rao, C.AFor Respondent: Ms.K. Haritha, CIT-DR
Section 44A

Kolors Healthcare India Private Limited, Hyderabad vs. ACIT., Central Circle-3(4), Hyderabad

In the result, the appeal of the assessee in ITA No

ITA 933/HYD/2024[2016-17]Status: DisposedITAT Hyderabad23 Jan 2025AY 2016-17

Bench: Shri Laliet Kumar & Shri Madhusudan Sawdiaआ. अपी.सं / Ita Nos.930 To 936/Hyd/2024 (निर्धारण वर्ष/Assessment Years:2013-14 To 2019-20) M/S. Kolors Healthcare India Pvt. Ltd., Hyderabad. Pan:Aadck8392B (Appellant) Vs. Asst. Commissioner Of Income Tax, Central Circle-3(4), Hyderabad. (Respondent) C.O. Nos.15 To 21/Hyd/2024 (In Ita Nos.930 To 936/Hyd/2024) (निर्धारण वर्ष/Assessment Years:2013-14 To 2019-20) (By Revenue) आ.अपी.सं / Ita Nos.937 To 941/Hyd/2024 (निर्धारण वर्ष/Assessment Years:2015-16 To 2019-20) M/S. Kolors Healthcare Llp, Asst. Commissioner Of Income Tax, Hyderabad. Vs. Central Circle-3(4), Pan:Aaofk6305L Hydearabad. (Appellant) (Respondent) C.O. Nos.22 To 26/Hyd/2024 (In Ita Nos.937 To 941/Hyd/2024) (निर्धारण वर्ष/Assessment Years:2015-16 To 2019-20) (By Revenue) निर्धारिती द्वारा/Assessee By: Shri P. Murali Mohan Rao, C.A. राजस्व द्वारा/Revenue By: Ms.K. Haritha, Cit-Dr सुनवाई की तारीख /Date Of Hearing: 04/12/2024 घोषणा की तारीख / Pronouncer G/Pronouncement: 23/01/2025 आदेश/Order Per Bench : All These Appeals Filed By M/S. Kolors Healthcare India Pvt. Ltd. ("Assessee") & M/S. Kolors Healthcare Llp & Cross Objections Filed By Revenue, Are Arising Out Of Separate Orders Of Learned Commissioner Of Income Tax (Appeals)-11, Hyderabad ("Ld. Cit(A)") As Detailed Above. Since Identical Issues Are Involved In These Appeals & Cross Objections ("C.O."), They Are Heard Together & Consolidated Order Is Being Passed For The Sake Of Convenience & Brevity.

For Appellant: Shri P. Murali Mohan Rao, C.AFor Respondent: Ms.K. Haritha, CIT-DR
Section 44A