ITAT Delhi Quashes Section 271B Penalty: Clarifies Turnover for Commission Businesses

Dharam Singh Vs ITO (ITAT Delhi) Background of the Case The present appeal involves the assessee, Dharam Singh, who was allotted a Mother Dairy milk booth under a self-employment scheme designed for ex-servicemen by the Directorate General Resettlement (DGR). In the assessment year 2017-18, Dharam Singh earned a commission of ₹4.62 lakhs by selling Mother Dairy products. However, the case arose when the Assessing Officer (AO) considered cash deposits made by the assessee, amounting to ₹2.46 crores, as his business turnover. Consequently, the AO levied a penalty of ₹1,23,313 under section...