Ripal Bhagavanjibhai Modi Vs Additional / Joint / Deputy /ACIT (ITAT Rajkot)
Summary: The Income Tax Appellate Tribunal, Rajkot Bench, has allowed the appeal of Ripal Bhagavanjibhai Modi for Assessment Year 2017-18 and deleted a penalty of Rs.1,50,000/- imposed under section 271B of the Income-tax Act, 1961. The dispute arose from the assessee’s alleged failure to comply with the tax audit requirement under section 44AB, although the assessee contended that the books had in fact been audited and the audit report had been submitted during the assessment proceedings.
The appeal was directed against the order of the National Faceless Appeal Centre/Commissioner of Income-tax (Appeals), dated 23.04.2026, which had confirmed the penalty order dated 21.08.2025 passed by the Assessing Officer under section 271B. The assessee’s solitary grievance before the Tribunal was that the penalty had been levied without proper appreciation of the facts, evidence and submissions.
The assessee, an individual, had not originally filed a return under section 139. Based on specific information, the assessment was reopened under section 148. According to the AIR information, cash deposits of Rs.2,18,36,710/- had been made in the assessee’s current bank account during the relevant year. In response to the notice under section 148, the assessee filed a return on 16.11.2024, declaring turnover of Rs.5,10,00,806/- and net profit of Rs.4,29,781/-. The assessment was completed under section 147 read with section 144B on 25.02.2025, accepting income at Rs.3,83,480/-.
