Penalty for Failure to get accounts audited cannot be levied if books not maintained

Somnath Ghosh Vs ITO (ITAT Kolkata)

AO himself recorded that no books were maintained by the assessee and penalty u/s 271B of the Act is to be imposed when any person fails to get his accounts audited. Admittedly there is no dispute that no books were maintained by the assessee and as rightly argued by the Ld.AR getting the same audited does not arise at all.

In view of the above, we set aside the order of CIT(A) and cancel the penalty imposed by the AO u/s 271B of the Act.

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