ANAND KUMAR GUPTA,BHOPAL vs. ASSISTANT COMMISSIONER OF INCOME TAX CENTRAL (CIRCLE) 2 , BHOPAL, BHOPAL

ITA 936/IND/2025Status: HeardITAT Indore08 May 2026AY 2007-0811 pages
AI SummaryRemanded

What did the Tribunal hold?

The Tribunal found that the penalty order under Section 271B and its sustenance by the CIT(A) might have become infructuous due to the subsequent fresh assessment order. Therefore, the Tribunal set aside the impugned order and remanded the case back to the Assessing Officer.

What were the facts?

The assessee failed to get his business accounts audited as required under Section 44AB, leading to a penalty under Section 271B. The CIT(A) upheld the penalty. Subsequently, a fresh assessment order was passed pursuant to an ITAT order, which proposed initiation of proceedings under Section 271(1)(c) but did not mention Section 271B.

What were the issues?

Whether the penalty levied under Section 271B for failure to obtain a tax audit report is still valid when a subsequent assessment order proposes proceedings under Section 271(1)(c) and does not refer to Section 271B.

Which sections of the Income-tax Act were involved?

Section 44AB,Section 271B,Section 271(1)(c)

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, INDORE BENCH, INDORE

For Appellant: Shri S.S. Deshpande, CA
For Respondent: Shri Ashish Porwal, Sr.DR
Hearing: 30.04.2026Pronounced: 08.05.2026

Per Paresh M Joshi, J.M.:

This is an Appeal filed by the Assessee under section 253 of the income tax Act 1961,[ herein after referred to as the Act

for the sake of brevity] before this tribunal as & by way of a second Appeal. The Assessee is aggrieved by the order

bearingNumber:-CIT(A)-3,Bhopal/IT/10294023/2006-07

dated 29.08.2025 passed by the Ld. CIT(A) u/s 250 of the Act, which is herein after referred to as the “Impugned

order”. The Relevant Assessment year is 2007-08 and the Anand Kumar Gupta ITA No. 936/Ind/2025 - A.Y.2007-08

corresponding previous year period is from 01.04.2006 to 31.03.2007. 2. Factual Matrix

2.

1 That as & by way of an order made u/s 271B of the Act a penalty of Rs

The order continues below.

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