Case Law Details
Tasavver Husain Vs ITO (ITAT Agra)
The case of Tasavver Husain vs. ITO, decided by the Income Tax Appellate Tribunal (ITAT) Agra, revolves around the levy of penalty under Section 271B of the Income Tax Act, 1961, on Mr. Tasavver Husain, a retired army personnel operating a milk booth under Mother Dairy. The appeal stemmed from the order of the Commissioner of Income Tax (Appeals) [CIT(A)] dated October 10, 2022, relating to the assessment year 2017-18.
Facts of the Case
During the assessment proceedings, it came to light that Mr. Husain had deposited Rs. 21,39,000/- in his bank account with the State Bank of India, Dilshad Garden, New Delhi. The Assessing Officer (AO) noted that Mr. Husain had not initially filed his income tax return for the relevant assessment year but later e-filed it on September 24, 2019, declaring an income of Rs. 4,47,350/-. The AO further utilized his powers under Section 133(6) to obtain information from Mother Dairy Fruits and Vegetables Pvt. Ltd., revealing a turnover of Rs. 1,44,75,723/- linked to Mr. Husain. Based on this turnover, the AO applied a net profit rate of 1.3% to compute Mr. Husain’s income.
Subsequently, the AO imposed a penalty of Rs. 72,378/- under Section 271B of the Income Tax Act, 1961, for Mr. Husain’s failure to get his accounts audited despite the turnover being subject to the provisions of Section 44AB. This penalty was contested by Mr. Husain before the CIT(A), arguing that he had indeed filed a tax audit report on September 18, 2019, albeit after the initial notice. Despite these submissions, the CIT(A) dismissed Mr. Husain’s appeal.
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