Telangana HC Upholds Penalty on Bookie for Tax Audit Non-Compliance

S. Ramakumar Reddy Vs ACIT (Telangana High Court) The Telangana High Court has dismissed an appeal filed by S. Ramakumar Reddy, a bookie at Hyderabad Race Club, upholding a penalty of Rs. 1,00,000/- levied under Section 271B of the Income Tax Act, 1961. The penalty was imposed for the assessee’s failure to comply with Section 44AB, which mandates the auditing of accounts for certain turnover thresholds. The High Court’s decision, delivered on April 8, 2005 (though the appeal was filed in 2005 and notice issued in 2006, the order date is specified as 2005), affirmed the earlier ruli...