Case Law Details
Bangla Readymade Garments Vs ACIT (ITAT Kolkata)
ITAT Kolkata held that penalty under section 271B of the Income Tax Act not leviable as turnover of the assessee is less than INR 1 Crore. Accordingly, the assessee is outside the purview of section 44AB of the Income Tax Act.
Facts- The sole grievance of the assessee is that ld. CIT(A) erred in confirming the penalty levied u/s 27 1B of the Act at Rs. 1.50 lakh for not getting the books of accounts audited.
Conclusion- Therefore, since the turnover of the assessee i.e. Rs. 32,38,340/- is less than Rs. 1 Cr during the year, it is out of the purview of Section 44AB of the Act. Since the assessee is not liable to get its books of accounts audited u/s 44AB of the Act, then provisions of Section 271B of the Act cannot come into force. We, thus, reverse the finding of ld. CIT(A) and delete the penalty of Rs. 1,50,000/- levied u/s 271B of the Act.
FULL TEXT OF THE ORDER OF ITAT KOLKATA
Please become a Premium member. If you are already a Premium member, login here to access the full content.
Author Bio
