M/S. HOTEL MAHARAJA,BARGARH vs. ITO, BARGARH WARD, BARGARH

ITA 768/CTK/2025Status: DisposedITAT Cuttack02 June 2026AY 2012-134 pages
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What did the Tribunal hold?

The tribunal held that penalty under Section 271B is not leviable when the assessee has not maintained books of account and income is estimated. In the second appeal, it was held that penalty under Section 271(1)(c) is not permissible when the final assessment is concluded with an estimated income.

What were the facts?

The assessee, a hotel, failed to get its accounts audited despite a turnover exceeding Rs. 1.40 crores. The assessee's income was also significantly higher than the returned income after a search operation.

What were the issues?

Whether penalty under Section 271B is leviable for non-audit when books of account are not maintained. Whether penalty under Section 271(1)(c) is leviable when the final assessment is based on estimated income.

Which sections of the Income-tax Act were involved?

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

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, CUTTACK BENCH CUTTACK

Before: SHRI GEORGE MATHAN & SHRI RAJESH KUMAR

Hearing: 02/06/2026Pronounced: 02/06/2026

Per Bench: These are two appeals filed by the assessee against the separate orders of CIT(A), Bhubaneswar-2 in Appeal Nos.NFAC/2011-12/10025781 and NFAC/2011- 12/10025782 dated 24/10/2025 and 22/10/2025 for the assessment year 2012-

13.2.

It was submitted by ld AR that the assessee is challenging the penalty levied u/s.271B of the Act and confirmed by the ld CIT(A). It was the submission that the assessee is running a hotel. It was the submission that the turnover of the assessee was approximately Rs.1.40 crores during t

The order continues below.

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