Section 271A Penalty Sustained Despite VSV Settlement; Non-Maintenance of Books Proved

Ramesh Chandra Dethaliya Vs ITO (ITAT Chandigarh) The ITAT, Indore Bench upheld penalty u/s 271A of ₹25,000 for non-maintenance of books of account, holding that opting for Vivad Se Vishwas Scheme, 2024 does not wipe out independent penalties not linked to quantum additions. In this case, the assessee—a wholesale vegetable trader—had gross receipts of about ₹63.87 lakh, exceeding the threshold u/s 44AA/44AB, yet failed to maintain books. The AO levied penalty u/s 271A, which was affirmed by CIT(A). The assessee argued that since tax arrears were settled under VSV 2024, the penalty shou...