BIHAR INDUSTRIAL AREA DEVELOPMENT AUTHORITY,PATNA vs. NATIONAL E ASSESSMENT CENTRE, DELHI

ITA 437/PAT/2025Status: DisposedITAT Patna31 August 2026AY 2018-197 pages
AI SummaryDismissed

What did the Tribunal hold?

The Tribunal held that the assessee failed to demonstrate any reasonable cause for not complying with the statutory requirement of getting its accounts audited and filing the tax audit report. Therefore, the penalty under Section 271B was rightly levied.

What were the facts?

The assessee, Bihar Industrial Area Development Authority, failed to get its accounts audited and file the tax audit report as required under Section 44AB for AY 2018-19. The Assessing Officer initiated penalty proceedings under Section 271B, which was upheld by the CIT(A).

What were the issues?

Whether a penalty under Section 271B is leviable for failure to get accounts audited and file the tax audit report when no reasonable cause is demonstrated by the assessee. Whether non-addition to income constitutes a reasonable cause for non-compliance.

Which sections of the Income-tax Act were involved?

Section 44AB,Section 271B,Section 273B

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, PATNA “DB” BENCH

Before: SHRI DUVVURU RL REDDY, VICE- & SHRI LAXMI PRASAD SAHU

For Appellant: Shri A.K. Rastogi, AR
For Respondent: Shri Ravi Kant Chowdhary, Sr. DR
Hearing: 28.07.2026Pronounced: 31.08.2026

PER LAXMI PRASAD SAHU, ACCOUNTANT MEMBER:

This Appeal is filed by the Assessee against the order of the NFAC, Delhi [“the Ld. CIT(A)”, for short], dated 31.07.2025 passed u/s 250 of the Income Tax Act, 1961 (“the Act”, for short) for the assessment year 2018-19. 2. Brief facts on record are that, the assessee filed its return of income for the assessment year 2018-19, declaring total income as NIL. The case was selected for scrutiny and the assessment u/s 143(3) of the Act was completed on 27.03.2021, accepting the returned loss. During the assessment proceedings, the Assessing Officer noted that the assessee has gross turnover to the tune of Rs.23.23

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 →