Tax Audit Mandatory Even for Exempt Income if Turnover Threshold Crossed: ITAT Kolkata

Jalpaiguri Zilla Regulated Market Committee Vs ITO (ITAT Kolkata) The ITAT Kolkata, in the case concerning penalty under section 271B for AY 2017–18, addressed whether failure to obtain a tax audit under section 44AB can be penalized when the assessee claims exemption under section 10(26AAB). The assessee, an Agricultural Produce Market Committee, did not file a return and its turnover was estimated during best judgment assessment. Based on the estimated turnover exceeding the threshold, the Assessing Officer levied penalty for non-compliance with audit requirements. The Tribunal held that a...