Penalty u/s 271B not leviable on local authority as it cannot be considered to be engaged in business

National Law University Vs Additional/Joint/Deputy/Assistant Commissioner of income Tax (ITAT Delhi)

ITAT Delhi held that penalty under section 271B of the Income Tax Act not leviable as assessee is a local authority and it cannot be considered to be one engaged in ‘business’ or to be earning profit.

Facts- The assessee university filed return of income for the assessment year 2018-19 declaring a total income at Rs. Nil. The assessee has claimed exemption u/s 10(23C)(i

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