RAJESH GAURISHANKAR PODDAR,MUMBAI vs. CENTRAL CIRCLE 7(4), MUMBAI, MUMBAI

ITA 1147/MUM/2026Status: DisposedITAT Mumbai19 May 2026AY 2014-1518 pages
AI SummaryDismissed

What were the facts?

The assessee was penalized under Section 271B for failing to obtain a tax audit report, despite claiming no business activity. The Assessing Officer (AO) initiated penalty proceedings based on sales declared in the profit and loss account, which exceeded the threshold for mandatory audit.

What did the Tribunal hold?

The Tribunal held that the penalty order was passed within the prescribed time limit under Section 275(1)(a) of the Income Tax Act, as the assessment order was subject to appeal before the CIT(A) and ITAT. Therefore, the extended period for passing the penalty order was applicable.

What were the issues?

The primary issue was whether the penalty order under Section 271B was barred by limitation, considering the appeals filed against the assessment order. Another issue involved the applicability of Section 44AB when the assessee claimed no business activity.

Which sections of the Income-tax Act were involved?

Section 271B,Section 44AB,Section 275(1)(a),Section 275(1)(c),Section 68

AI-generated summary — verify with the full judgment below

Before: SHRI SANDEEP GOSIAN & SHRI BIJAYANANDA PRUSETH

For Appellant: Shri Rushabh Mehta
For Respondent: Shri Umashankar Prasad (CIT DR) & Shri
Hearing: 19.05.2026Pronounced: 28.07.2026

PER BIJYANANDA PRUSETH, AM:

These two appeals filed by the assessee emanate from the common order

passed under section 250 of the Income-tax Act, 1961 (in short, ‘Act’) by the Commissioner of Income Tax, Appeal- 49, Mumbai [in short, ‘CIT(A)’], dated

28.11.

2025 for the assessment years (AY) 2013-14 and 2014-15, which in turn

arise out of the order passed by the AO u/s 271B of the Act dated 21.08.2023 and 30.08.2023 respectively. Since the facts and grounds are similar, with the consent

of both parties, the appeals were clubbed and heard together and a common

orde

The order continues below.

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