Section 271A Penalty Quashed for Local Authority Not Maintaining Books of Accounts

Yamuna Expressway Industrial Development Authority Vs CIT (Appeal) (ITAT Delhi) The Income Tax Appellate Tribunal (ITAT), Delhi bench, pronounced an order in favor of the Yamuna Expressway Industrial Development Authority (YEIDA), a statutory body, deleting a penalty levied under Section 271A of the Income Tax Act, 1961 (the Act) for the Assessment Year (AY) 2006-07. The core issue was whether YEIDA, as a Local Authority providing General Public Utility (GPU) services, was required to maintain the specific books of account mandated by Section 44AA of the Act. Background of the Dispute The asse...