Case Law Details
Haresh Ghanshyamdas Makhija Vs ITO (ITAT Mumbai)
Introduction: Haresh Ghanshyamdas Makhija contested an ex parte order from the Commissioner of Income Tax (Appeals) regarding penalties imposed under sections 271A and 271B of the Income Tax Act for the Assessment Year 2016-17. The Income Tax Appellate Tribunal (ITAT) Mumbai deliberated on the matter.
Detailed Analysis
1. Penalty Imposition: The assessee challenged penalties levied under sections 271A and 271B by the Assessing Officer (AO), which were subsequently upheld by the Commissioner of Income Tax (Appeals) (CIT(A)). The penalty under section 271A pertained to the non-maintenance of books of accounts, while the penalty under section 271B related to failure in audit compliance.
2. Legal Argument: The appellant argued that once a penalty is imposed under section 271A for non-maintenance of accounts, the AO cannot levy an additional penalty under section 271B. This contention was supported by judicial precedents and established legal principles.
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