Case Law Details
Vinay Agrawal Vs ITO (ITAT Indore)
Penalty U/s. 271B of the Income Tax Act, 1961 is leviable for failure to get accounts audited where the turnover / gross receipts exceeds the prescribed limit. Many times it happens that the turnover as per the regular books of accounts remains under the prescribed limit and as such the assessee do not gets the accounts audited U/s. 44AB.
But later on, some undisclosed turnover is detected by the assessing officer or some amount which is not turnover in view of the assessee is treated by the assessing officer as turnover, by taking some different view.
In such a situation, the combined turnover i.e., turnover as per the books of accounts and the amount which is detected / treated as turnover by the assessing officer exceeds the prescribed limit for tax audited and consequently, the assessee has to face the proceedings for levy of penalty U/s. 271B.
Recently, the Hon’ble Income Tax Appellate Tribunal, Indore Bench has in the case of Vinay Agrawal, Ujjain Vs. ITO-1(2), Ujjain (ITA No. 933/Ind/2018) dated 31.10.2019, decided the issue in favour of the assessee and has deleted the penalty levied by assessing officer treating some receipts as unaccounted turnover.
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