MANISHA,AMBALA vs. INCOME TAX OFFICER, AMBALA

ITA 336/CHANDI/2026Status: DisposedITAT Chandigarh20 August 2026AY 2022-20233 pages
AI SummaryRemanded

What did the Tribunal hold?

The Tribunal held that since the underlying assessment orders, which formed the basis for the penalty, were no longer valid due to being set aside by the CIT(A) for fresh assessment, the penalties should also be reconsidered.

What were the facts?

The assessee failed to get their accounts audited under Section 44AB despite having a turnover exceeding the threshold. This led to the initiation of penalty proceedings under Section 271B by the Assessing Officer.

What were the issues?

Whether penalties under Section 271B are sustainable when the original assessment orders are set aside for fresh adjudication.

Which sections of the Income-tax Act were involved?

Section 44AB,Section 271B,Section 251(1)(a)

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, “B” BENCH, CHANDIGARH

Before: HON’BLE SHRI MANOJ KUMAR AGGARWAL, AM & HON’BLE SHRI RAJESH DAMODARLAL SHARMA, JM

Heard together (2 matters)

ITA No.335/CHANDI/2026
ITA No.336/CHANDI/2026

Read from the judgment's own cause title. This page is filed under one of them.

RAJESH DAMODARLAL SHARMA (Judicial Member)

1.

In the aforesaid appeals for Assessment Years (AY) 2021-22 & 2022-23, the assessee assails levy of penalty u/s 271B for Rs.1.50 Lacs each for failure to get accounts audited u/s 44AB. These appeals

arises out of separate orders of Ld. Commissioner of Income Tax (Appeals), NFAC, Delhi (in short “the CIT”) both dated 05.01.2026. 2. Brief facts are that for AY 2021-22, an asse

The order continues below.

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