Section 271B Penalty Automatically Lapses When quantum assessment set aside

Prabhat Kumar Rastogi Vs ITO (ITAT Delhi) ITAT Delhi: Penalty u/s 271B deleted as quantum assessment set aside – No basis survives for levy Delhi ITAT deleted penalty u/s 271B, holding that once the quantum assessment forming the very basis of penalty had been set aside, the penalty could not survive. Assessee, an individual trader, had declared income of ₹3,19,040/-. AO, during scrutiny for demonetization-period deposits, treated total bank credits of ₹2.34 crore as turnover, applied 28% profit rate, & levied penalty of ₹1,17,258/- u/s 271B for failure to get accounts audited u/s ...