HOTEL MAHARAJA,BARGARH vs. ITO WARD BARGARH, BARGARH

ITA 685/CTK/2026Status: DisposedITAT Cuttack19 August 2026AY 2013-144 pages
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What did the Tribunal hold?

The Tribunal decided that the penalty under Section 271(1)(c) should be deleted as the final assessment was based on estimated income. However, the penalty under Section 271B was confirmed, following the previous decision where the assessee's failure to get accounts audited was not excused.

What were the facts?

The assessee appealed against penalties levied under Section 271(1)(c) and Section 271B of the Income Tax Act for AY 2013-14. The appeals were based on a coordinate bench's decision in the assessee's own case for AY 2012-13.

What were the issues?

Whether penalty under Section 271(1)(c) is leviable when income is assessed on an estimated basis. Whether penalty under Section 271B is leviable for failure to get accounts audited when turnover exceeds the threshold.

Which sections of the Income-tax Act were involved?

Section 271(1)(c),Section 271B

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, CUTTACK BENCH CUTTACK

Before: SHRI GEORGE MATHAN & SHRI RAKESH MISHRA

Hearing: 19/08/2026Pronounced: 19/08/2026

Per George Mathan, JM: ITA No.685/CTK/2026 has been filed by the assessee against the order dated 24.10.2025 of CIT(A), 2, Bhubaneswar (the ‘CIT(A)’) confirming the penalty u/s 271(1)(c) of the Act and ITA No.686/CTK/2026 is an appeal by the assessee confirming the penalty u/s 271B of the Act for the assessment year 2013-14. 2. Shri P. R. Mohanty, AR appeared on behalf of the assessee and Shri Arnab Mukherjee, Sr. DR represented on behalf of the revenue.

3.

It was submitted by the ld. AR that the issue is squarely covered by the decision of the

The order continues below.

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