Impounded Documents & Lapse of CA: ITAT Quashes Section 271B Penalty

Murugesh Shantveerya Hiremath Vs DCIT (ITAT Pune) Income Tax Appellate Tribunal (ITAT) Pune ruled in favor of Dr. Murugesh Shantveerya Hiremath, setting aside a ₹1,50,000 penalty imposed under Section 271B of the Income Tax Act. The penalty was initially levied due to the delayed submission of the tax audit report for Assessment Year 2018-19. The assessee, a cardiologist, had gross professional receipts exceeding the audit threshold but failed to submit the audit report within the due date. The delay stemmed from the Income Tax Department impounding key financial records during a survey in 2...