Section 44AB of the Income Tax Act

Income-tax Act, 2025: s.63

Section 44AB of the Income-tax Act, 1961 corresponds to section 63 (Tax Audit) of the Income-tax Act, 2025.

Read section 63 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 44AB is Ashok Pai v. CIT (292 ITR 11), cited in 812 of the 2,486 judgments on BharatTax that turn on this section.

Leading authorities on Section 44AB

Ashok Pai v. CIT
292 ITR 11 · 2007 · Supreme Court
812
citing judgments

“Concealment of particulars of income” and “furnishing inaccurate particulars of income” are two distinct offences under Section 271(1)(c) of the Income Tax Act. A penalty cannot be levied under one limb if the show cause notice or basis for penalty specifies the other, as this constitutes a complete variance in the reasons for assuming jurisdiction.

MALPE VISHWANATH ACHARYA AND OTHERS v. STATE OF MAHARASHTRA AND ANOTHER. 365 32
9 SCC 1 · 2018 · Supreme Court
533
citing judgments
Saurashtra Cement and Chemical Industries Ltd. v. CIT
213 ITR 523 · 1995 · High Court
311
citing judgments

Expenditure is deductible in the year it is determined and crystallised as a liability, even if it relates to a transaction of an earlier year, provided accounts are maintained on a mercantile basis.

CIT v. Vijay M. Mistry Construction Ltd.
355 ITR 498 · 2013 · High Court
252
citing judgments

In cases of alleged bogus or hawala purchases where the existence of transactions is not entirely denied, only the profit element embedded in such purchases, and not the entire purchase price, can be added to the assessee's income. The focus is on determining a reasonable profit percentage for such additions.

Mahindra and Mahindra Ltd. v. DCIT
30 SOT 374 · 2009 · ITAT
201
citing judgments

The Commissioner of Income Tax (Appeals) cannot expand the scope of an assessment or improve the Assessing Officer's case in a manner that usurps the revisional power of the Commissioner of Income Tax under Section 263 of the Income-tax Act.

Chandra Kishore Jha v. Mahavir Prasad
8 SCC 266 · 1999 · Supreme Court
163
citing judgments

If a statute or law prescribes that a thing must be done in a particular manner, then it must be done in that manner alone and in no other way. This principle mandates strict adherence to statutory procedures.

CIT v. Contimeters Electricals (P.) Ltd.
317 ITR 249 · 2009 · High Court
140
citing judgments

The requirement to file an audit report along with the return of income under section 80-IA(7) and similar provisions is directory, not mandatory. Such a report suffices if filed at any time before the assessment is framed.

Vijay Trading Co. v. ITO
388 ITR 377 · 2016 · High Court
119
citing judgments

When purchases are found bogus, only the profit element embedded therein, and not the entire purchase value, can be added to the assessee's income.

CIT v. Berger Paints (India) Ltd.
254 ITR 503 · 2002 · High Court
118
citing judgments

A deduction claimed under Section 80-IB (or 80-IA) cannot be denied solely on the ground of non-filing or delayed filing of the audit report in Form 10CCB, as such procedural requirements can be treated as directory, and delays may be condoned.

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.

Judgments on Section 44AB

Sibasankar Sahu, - Deogarh vs. PCIT, Sambalpur

In the result, appeal of the assessee is allowed

ITA 217/CTK/2022[2017-18]Status: DisposedITAT Cuttack09 Oct 2023AY 2017-18

Bench: Shri George Mathan & Shri Rajesh Kumarआयकर अऩीऱ सं/Ita No.217/Ctk/2022 (ननधाारण वषा / Assessment Year : 2017-2018) Sibasankar Sahu, Vs Pr.Cit, Sambalpur Arnapurna Store, At: Bania Sahi, Po/Ps: Deogarh Dist-Deogarh-768108 Pan No. :Apeps 1706 E (अऩीऱाथी /Appellant) .. (प्रत्यथी / Respondent) ननधााररती की ओर से /Assessee By : Shri P.K.Mishra, Advocate राजस्व की ओर से /Revenue By : Shri Abani Kanta Nayak, Cit-Dr सुनवाई की तारीख / Date Of Hearing : 09/10/2023 घोषणा की तारीख/Date Of Pronouncement : 09/10/2023 आदेश / O R D E R Per Bench : This Is An Appeal Filed By The Assessee Against The Order Of The Ld. Pr.Cit, Sambalpur, Dated 18.03.2022, Passed In Itba/Rev/F/Rev5/2021-22/1041011837(1) For The Assessment Year 2017-2018. 2. It Was Submitted By The Ld. Ar That The Appeal Filed By The Assessee Is Delayed By 199 Days. It Was The Submission That The Delay Was On Account Of Medical Treatment Of The Assessee’S Father & Assessee’S Wife. It Was The Submission That The Assessee Is An Individual Engaged In Trading Of Potatoes, Onion & Garlic In The Remote Area Of The District Of Deogarh, Odisha. It Was The Submission That The Assessee Was Not Well- Versed In Taxation Issues & On Account Of The Medical Treatment Of The 2 Assessee’S Father As Also The Assessee’S Wife, The Assessee Could Not File

For Appellant: Shri P.K.Mishra, AdvocateFor Respondent: Shri Abani Kanta Nayak, CIT-DR
Section 144Section 144ASection 263Section 44A

Mohd Aslam, Allahabad vs. ITO-1(3), Allahabad

In the result, the appeal of the assessee is allowed for statistical purposes

ITA 23/ALLD/2023[2013-14]Status: DisposedITAT Allahabad04 Oct 2023AY 2013-14

Bench: Shri Aby T. Varkey, Jm आयकर अपील सं/ I.T.A. No.23/Alld/2023 (निर्धारण वर्ा / Assessment Year: 2013-14) Mohd Aslam बिधम/ Commissioner Of Income 53, Kaithana, Phulpur, Tax (Appeals) Vs. Allahabad, Uttar Pradesh- 212402. स्थधयी लेखध सं./जीआइआर सं./Pan/Gir No. : Aonpa6681E (अपीलार्थी /Appellant) .. (प्रत्यर्थी / Respondent) Assessee By: Shri S. K. Yogeshwar Revenue By: Shri A. K. Singh (Sr. Dr) सुनवाई की तारीख / Date Of Hearing: 14/09/2023 घोषणा की तारीख /Date Of Pronouncement: 04/10/2023 आदेश / O R D E R Per Aby T. Varkey, Jm: This Is An Appeal Preferred By The Assessee Against The Order Of The Ld. Cit(A)/Nfac, Delhi Dated 18.01.2023 For Ay. 2013-14 Wherein The Ld. Cit(A) Has Confirmed The Penalty Order Of The Ao Imposing The Penalty U/S 271B Of The Income Tax Act, 1961 (Hereinafter “The Act”) To The Tune Of Rs.55,660/-. 2. At The Outset, The Ld. Ar Of The Assessee Brought To My Notice That The Impugned Order Of The Ld. Cit(A) Is An Ex-Parte Order. & The Ld. Cit(A), Taking Note That The Assessee Did Not File Any Response To The Notices Issued, Dismissed The Appeal Ex-Parte Qua Assesse. Further, It Has Been Brought To My Notice That In The Assessee’S Case Assessment U/S 143(3) Of The Act Was Completed On 17.02.2016 Inter- Alia Making Certain Additions. The Ld. Cit(A) Noted That The Assessee’S Actual Business Receipt Was To The Tune Of Rs.1,11,51,920/- Whereas The Assessee Had Shown In His Books Only Rs.27,29,000/-.

For Appellant: Shri S. K. YogeshwarFor Respondent: Shri A. K. Singh (Sr. DR)
Section 143(3)Section 271BSection 44A