ITAT quashes section 271B Penalty as Assessee’s Bank Deposits Reflect Sales for Mother Dairy, Not Own Turnover

Ved Singh Vs ITO (ITAT Delhi) In the case of Ved Singh vs. ITO (ITAT Delhi), the taxpayer Ved Singh challenged a penalty levied under Section 271B of the Income-tax Act, 1961, amounting to ₹1,09,807 for the assessment year 2017-18. The penalty was initially imposed by the Assessing Officer (AO) due to Singh’s failure to get his accounts audited under Section 44AB, as his bank account showed cash deposits exceeding ₹1 crore. Singh argued that he was a commission agent for Mother Dairy, earning only commission income amounting to ₹3,24,558, and the deposited amount represented sales on b...