No Reasonable Cause: ITAT Quashes Appeal Against Section 271B Audit Penalty

Sunil Sharma Vs ITO (ITAT Delhi) The appeals pertained to Assessment Years 2013-14 and 2014-15 concerning penalties under Section 271B for failure to audit accounts. The assessee had declared turnover exceeding Rs. 1 crore in both years but did not get his accounts audited as required under Section 44AB. Consequently, the Assessing Officer imposed penalties of Rs. 81,564 and Rs. 78,588, which were upheld by the CIT(A)/NFAC. Before the ITAT, the assessee did not provide any satisfactory explanation or mitigating circumstances that could constitute “reasonable cause” under Section 274 to exc...