No Penalty on Another Charge if Section 271B Notice was Based on Non-Existing Infringement

Makashood Asharaf Vs ITO (ITAT Lucknow) Section 271B Penalty initiated for Not Auditing Books Invalid if Levied for not furnishing audit report i.e. notice issued on the basis of non-existing infringement is bad in law and cannot be the basis of levy of penalty on another charge In a significant ruling, the Income Tax Appellate Tribunal (ITAT), Lucknow, has invalidated a penalty imposed under Section 271B of the Income Tax Act. The penalty was initially levied for the failure to submit an audit report on time, even though the assessee, Makashood Asharaf, had already had his accounts audited. T...