UNIVERSITY OF CALCUTTA,KOLKATA vs. DEPUTY COMMISSIONER OF INCOME TAX (EXEMPTIONS), CIRCLE 1(1), EXEMPT, KOLKATA

ITA 692/KOL/2026Status: DisposedITAT Kolkata16 September 2026AY 2018-195 pages
AI SummaryAllowed

What did the Tribunal hold?

The Tribunal held that the University of Calcutta is exempt from the requirement of auditing its books of accounts under Section 44AB as its income is exempt under Section 10(23C)(iiiab). Consequently, no penalty can be levied under Section 271B.

What were the facts?

The University of Calcutta, wholly funded by the state government and operating solely for educational purposes, failed to get its books of accounts audited under Section 44AB of the Income Tax Act, 1961, despite its gross receipts exceeding ₹1.00 crore. The Assessing Officer levied a penalty under Section 271B for this non-compliance.

What were the issues?

Whether a state-funded university operating solely for educational purposes is liable for penalty under Section 271B for failing to audit its accounts, given its income is exempt under Section 10(23C)(iiiab).

Which sections of the Income-tax Act were involved?

Section 44AB,Section 271B

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, “D” BENCH, KOLKATA

Before: SHRI RAJESH KUMAR, AM & SHRI PRADIP KUMAR CHOUBEY, JM

For Appellant: Shri Nikhil Tiwari
For Respondent: Shri Dipu Koley, DR
Hearing: 27.08.2026Pronounced: 16.09.2026

Per Rajesh Kumar, AM:

These are the appeals preferred by the assessee against the orders of the National Faceless Appeal Centre, Delhi (hereinafter referred to as the “Ld. CIT(A)”] even dated04.12.2025 for the AY 2018-19 & A.Y. 2019-20. The penalties were levied u/s 271B of the Income-tax Act, 1961 (the Act) vide order dated 27.09.2023 & 08.08.2024 by the ld. AO.

2.

The only issue raised by the assessee is against the order of ld. CIT (A) confirming the penalty of ₹1,50,000/- as levied by the ld. AO for not getting the books of accounts audited.

ITA Nos. 692 & 693/KOL/2026 University of

The order continues below.

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