RADHEYTSHYAM BISAHNI,SURAT vs. ITO, WARD-1(2)(1), SURAT

ITA 325/SRT/2026Status: DisposedITAT Surat17 August 2026AY 2015-1612 pages
AI SummaryAllowed

What did the Tribunal hold?

The Tribunal held that the assessee was not required to get his books audited as the turnover related to capital gains, not business income. Therefore, no penalty could be levied under Section 271B.

What were the facts?

The assessee's appeal pertains to a penalty levied under Section 271B for AY 2015-16. The Assessing Officer initiated penalty proceedings believing the assessee's turnover exceeded the threshold for mandatory audit under Section 44AB. The CIT(A) confirmed the penalty.

What were the issues?

Whether penalty under Section 271B is leviable when the assessee's turnover does not attract mandatory audit under Section 44AB due to the nature of income (capital gains vs. business income).

Which sections of the Income-tax Act were involved?

Section 271B,Section 44AB,Section 273B

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, “SMC”

Before: Dr. Arjun Lal Saini

Hearing: 19/05/2026Pronounced: 17/08/2026

Per Dr. Arjun Lal Saini, AM:

Captioned appeal filed by the assessee, pertaining to assessment year (AY) 2015-16, is directed against the order passed under section 250 of the Income-tax Act, 1961 [hereinafter referred to as ‘the Act’] dated 06.02.2026 by the National Faceless Assessment Centre, Delhi/ Commissioner of Income Tax (Appeals) [hereinafter referred to as ‘Ld.CIT(A)/NFAC’], which in turn arises out of Penalty order passed by the Assessing Officer [hereinafter referred to as ‘AO’] u/s. 143(3)

The order continues below.

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