ITAT Kolkata: Penalty Deleted – AO Cannot Demand P&L for Section 44AD Income

Prem Kumar Goutam Vs DCIT (ITAT Kolkata) Introduction: The Income Tax Appellate Tribunal (ITAT) Kolkata recently delivered a verdict in the case of Prem Kumar Goutam vs. DCIT, addressing the imposition of a penalty under section 270A of the Income Tax Act. The dispute centered on whether the Assessing Officer (AO) could require the taxpayer to produce a Profit and Loss Account to justify expenditures not recorded in Gross Receipt under section 44AD. This article provides an analysis of the ITAT’s decision. Detailed Analysis: The case involved the appellant, who was a brick kiln dealer an...