BRILLIANT INDUSTRIES PRIVATE LIMITED,HYDERABAD vs. DCIT, CIRCLE -1(1), HYDERABAD

ITA 575/HYD/2026Status: DisposedITAT Hyderabad09 September 2026AY 2022-238 pages
AI SummaryAllowed

What did the Tribunal hold?

The Tribunal held that the assessee had provided sufficient evidence, including bank statements and cash books, to demonstrate that cash transactions did not exceed the 5% limit. Therefore, the penalty levied for non-compliance with Section 44AB was not sustainable.

What were the facts?

The assessee, engaged in chemical trading, was levied a penalty under Section 271B for not filing an audit report under Section 44AB. The assessee claimed that its cash transactions were below 5% of the total turnover, thus falling under the first proviso to Section 44AB, which exempts them from the audit requirement.

What were the issues?

Whether the assessee was required to obtain an audit report under Section 44AB when cash transactions were below 5% of the total turnover. Whether the penalty under Section 271B was rightly levied for non-compliance.

Which sections of the Income-tax Act were involved?

Section 44AB,Section 271B,Section 143(3),Section 144B

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, Hyderabad “A” Bench, Hyderabad

Pronounced: 09.09.2026

PER MANJUNATHA G., A.M : This appeal filed by the assessee is directed against the order of the learned Commissioner of Income Tax (Appeals), National Faceless Appeal Centre [in short “NFAC”], Delhi, dated 01.02.2026, pertaining to the assessment year 2022-23. 2. The brief facts of the

The order continues below.

Read the full judgment

A free account opens 10 full judgments a month. Re-reading one you have already opened does not count again.

Create a free accountSign in

See plans and prices

The summary, the parties, the sections and the citations above are open to everyone and always will be. Only the text of the order and the PDF are metered.

More judgments on Section 44AB

All 2,486 judgments and leading authorities on Section 44AB →

Recent GST High Court judgments

Search GST case law →