Entire Bank Transactions Cannot Be Treated as Turnover for Section 271B Penalty

Ramesh P Mehta Vs ITO (ITAT Surat) Income Tax Appellate Tribunal (ITAT) Surat has remanded the penalty proceedings under Section 271B of the Income Tax Act, 1961, to the Assessing Officer (AO) for fresh consideration in the case of Ramesh P. Mehta vs. ITO. The appellant contested the penalty imposed for alleged failure to comply with tax audit requirements. ITAT found merit in the assessee’s argument that the AO had wrongly treated all bank transactions as turnover for penalty purposes. The matter was sent back for reassessment, following principles of natural justice. The appeals pertained ...