Mere cash deposits not constitutes turnover for Section 44AB Audit: ITAT Delhi

Mohd Javed Vs ITO (ITAT Delhi) In Mohd Javed vs. Income Tax Officer (ITO), the Delhi ITAT addressed an appeal concerning a penalty under Section 271B of the Income Tax Act, imposed due to unreported turnover. Javed, a commission agent for the Gujarat Milk Cooperative Federation, reported a nominal turnover of ₹4.01 lakh in his tax return, while cash deposits of ₹4.3 crore appeared in his bank account. The revenue authorities treated these deposits as turnover, thereby requiring an audit under Section 44AB, and subsequently imposed a penalty for non-compliance. Javed contended that the cash...