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addition to the total income in this case was on account of disallowance of claim of agricultural income being unsubstantiated, disallowance of 44AF claim, addition for deemed dividend and section 14A disallowance. In the statement of total income filed by the assessee, the assessee has claimed total sales of ₹.52,03,594/- and claimed profit at the rate of 5% on these to declare a presumptive income of ₹.4,16,288/- under section 44F of the Act. During the course of assessment proceedings, on 23.03.2016, the assessee was asked to produce sales ledger for the financial year 2012-13 and was also asked to explain as to why the claim of 44F of the Act should not be revoked based on the facts on record. The assessee did not produce any ledger for the same. No explanatory notes or original books of account have been filed or produced by the assessee in support of these claims during the course of the entire assessment proceedings and the same have been dealt at length in the assessment order dated 30.03.2016. The onus of maintaining books of account are clearly enunciated in section 44AA of the Act. The assessee has claimed deemed profits under section 44AF of the Act and offered 5% as income on gross receipts. However, to be eligible for the benefit of section 44AF of the Act, the proviso to sub-section (1) mandates that the total turnover should not exceed forty lakh rupees. In this case the total turnover is ₹.52,03,594/-. Hence, 44AF of the Act is not available to this assessee and the same have been discussed in the assessment order passed on 30.03.2016.

4. On being aggrieved, the assessee is in appeal before the Tribunal. By reiterating the submissions as made before the ld. CIT(A), the ld. Counsel for the assessee prayed for deleting the penalty levied under section 271A of the Act. On the other hand, the ld. DR strongly supported the order of the ld. CIT(A).

5. We have heard both the sides, perused the materials available on record and gone through the orders of authorities below. In this case, the assessee is in the business of livestock poultry. The assessee has claimed deemed profits under section 44AF of the Act and offered 5% as income on gross receipts. However, to be eligible for the benefit of section 44AF of the Act, the proviso to sub-section (1) mandates that the total turnover should not exceed forty lakh rupees. In this case, the total turnover is ₹.52,03,594/- and hence, 44AF is not available to this assessee, which was discussed in the assessment order passed on 30.03.2016. After reproducing the provisions and :- 4 -:

In respect of section 44AF the assessee is eligible for turnover upto 1 crore for the Assessment Year 2013-14 and not 40 lakhs as stated by the Assessing Officer in penalty order para-3, page no...of the Order. Hence, the penalty has been levied on wrong facts and deserves to be cancelled. As the assessee estimated the income under section 44AF and the turnover is below 1 Crore, the assessee did not maintain accounts. The assessee is in the business of livestock poultry business and the government has given concession on certain sections of the Income Tax Act for livestock and poultry business. And as such as I have estimated income at 8% of the turnover of the u/s.44AF (upto 1 Crore) (and not 40 lakhs as stated by the Assessing Officer). I request you to kindly cancel the penalty.