ITAT quahes ₹1.5 Lakh Penalty as Failure to Obtain Tax Audit Was Not Deliberate

Stargate Enterprises Pvt. Ltd. Vs DCIT (ITAT Chennai) The Income Tax Appellate Tribunal (ITAT), Chennai allowed the assessee’s appeal and deleted the penalty of ₹1,50,000 levied under Section 271B of the Income Tax Act, 1961, holding that the assessee had established a reasonable cause under Section 273B for not obtaining a tax audit report under Section 44AB. The assessee, a company, filed its return for Assessment Year (AY) 2018-19 declaring a total income of ₹12,00,22,760. The return was initially processed under Section 143(1), and the income was determined at ₹15,35,25,960. Su...