First year of applicability of Tax Audit – ITAT deletes Section 271B penalty

Kartick Das Bairagya Vs ITO (ITAT Kolkata) The case of Kartick Das Bairagya Vs ITO, brought before the Income Tax Appellate Tribunal (ITAT) Kolkata, provides significant insights into the implications of Section 271B of the Income Tax Act. The case demonstrates how reasonable cause for failing to furnish an audit record can result in no penalty under this section. The appellant, engaged in the retail business of building materials on a commission basis, was penalised Rs. 1,50,000/- under section 271B for failing to audit and furnish a report as per section 44AB of the Act. This happened due to...