Penalty Falls with Quantum: Rajkot ITAT Deletes 271B After Base Addition Removed

Dineshbhai Mohanbhai Dangariya Vs ITO (ITAT Rajkot) This appeal concerned penalty of Rs.79,287/- imposed by AO u/s 271B for failure to get books audited, as Assessee’s turnover exceeded Rs.40 lakhs. AO issued penalty notice on 25.03.2016 & levied penalty @1% of turnover, observing that Assessee neither got books audited nor responded to notices. CIT(A) confirmed the penalty, noting absence of any effective rebuttal during appellate proceedings. Before Tribunal, Learned Counsel submitted that the very quantum addition forming the basis of penalty had already been deleted by Tribunal in As...