Bhavishaben Bhajivala Vs ITO (ITAT Surat)
Summary: The appeal was filed by the assessee against the exparte appellate order dated 23.02.2026 passed by the Commissioner of Income Tax (Appeals), National Faceless Appeal Centre, Delhi, confirming the penalty levied under Section 271B of the Income Tax Act, 1961 for Assessment Year 2019-20. The assessee was an individual working as an agent of Surat District Co-operative Milk Producers Union Ltd., popularly known as SUMUL Dairy. She sold 500 ml milk pouches to regular retail customers and earned commission/trade discount of Rs. 5,36,844/- from SUMUL Dairy. During the year, Rs. 1,15,83,240/- was deposited from receipts relating to the sale of milk pouches.
The assessment was reopened through notice under Section 148 dated 23.03.2023. The assessee filed her return on 27.02.2024 declaring total income of Rs. 2,90,200/- and submitted her Profit and Loss Account, Balance Sheet, Capital Account, computation of income, bank book, bank statement, cash book, SUMUL Dairy ledger accounts and statement showing commission income/trade discount. The reassessment was completed on 15.03.2024 accepting the returned income without any variation.
Thereafter, penalty proceedings under Section 271B were initiated on the ground that the assessee had failed to get her books audited under Section 44AB. During the penalty proceedings, the assessee submitted that she had earned commission income, that her total income was below the threshold and that there was no obligation to obtain a tax audit. The Assessing Officer did not accept the submission and imposed a penalty of Rs. 57,916/- at 5% of the gross receipts. The assessee appealed to the CIT(A), which dismissed the appeal for non-prosecution.
