Section 271B penalty not imposable for non-business income transactions

Lalit Sakalchand Gandhi Vs ACIT (ITAT Pune) AO initiated penalty proceedings u/s. 271B of the Act against the assessee for his failure to gets its accounts audited. The ld. AR contends that there were no sales or purchase made by the assessee during the year under consideration and the additions made on account of unexplained cash deposits, unexplained investments, unexplained other investments and unexplained profit on sale of land to an extent of Rs.15,40,26,567/- is not turnover as the investments and sale of land was in the nature of capital gain but not in the category of business income....