Section 271B penalty quashed as Revenue Misinterprets Gross receipt of agent as Sales

Sh. Nikki Tyagi Vs ITO (ITAT Delhi) The case of Sh. Nikki Tyagi vs. Income Tax Officer (ITO) addressed a penalty imposed under Section 271B of the Income Tax Act due to a turnover exceeding the threshold requiring an audit. Tyagi, a distributor for Mother Dairy, filed a return under presumptive taxation, declaring income from commission-based transactions without maintaining formal books. The Assessing Officer (AO) determined Tyagi’s total turnover as ₹3.19 crore, which exceeded ₹1 crore, and hence required an audit under Section 44AB. The AO levied a penalty of ₹1.5 lakh for non-audit...