SUNIL SHARMA,BHIWANI vs. ITO, CHARKHI DADRI, BHIWANI
In favour of the Revenue: the assessee's appeal was dismissed. From the AI summary of this appeal.
What did the Tribunal hold?
The Tribunal upheld the penalties imposed under section 271B as the assessee failed to provide any reasonable cause or mitigating circumstances for not getting the books audited.
What were the facts?
The assessee failed to get his books of accounts audited despite declaring a turnover exceeding Rs. 1 crore for assessment years 2013-14 and 2014-15. This led to penalties being levied under section 271B.
What were the issues?
Whether the penalty under section 271B is leviable for failure to get books audited when no reasonable cause is shown by the assessee.
Which sections of the Income-tax Act were involved?
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, DELHI BENCH: ‘G’ NEW DELHI
Before: SHRI SATBEER SINGH GODARA & SHRI NAVEEN CHANDRA
ORDER
PER SATBEER SINGH GODARA, JM
This assessee’s twin appeals & 1905/Del/2025 for assessment years 2013-14 & 2014-15, arise against the Commissioner of Income Tax (Appeals)/National Faceless Appeal Centre [in short, the “CIT(A)/NFAC”], Delhi’s orders, both dated 24.02.2025 having DIN and order no. ITBA/NFAC/S/250/2024- 25/1073652389(1) and ITBA/NFAC/S/250/2024-25/ 1073652514(1) involving proceedings under section 271B of the Income-tax Act, 1961 (hereinafter referred to as ‘the Act’); respectively. Heard both the parties. Case file perused.
We note at the outset that the assessee’s instant twin appeals raise an identical issue of correctness of both the learned lower authorities’ action levying 271B penalties of Rs. 81,564/- and 78,588/-; case-wise, respectively for not having got his books audited despite declaring more than the specified turnover of Rs. 1 crore each. It is in this factual backdrop that we sought to know the mitigating circumstances from the assessee side for the purpose of explaining the reasons for not getting his books of account audited under section 44AB. No reply much less a satisfactory one, has come which could be treated as a reasonable cause under section 274 of the Act so as to get out of the rigor of the above statutory provisions in the instant second appellate proceedings. Faced with this situation, we hereby express our inability to disagree with both the learned lower authorities’ respective findings levying the impugned section 271B penalty which stand upheld therefore. Ordered accordingly. No other ground or argument has been pressed before us.
More judgments on Section 271B
- Devayatbhai Kalotara, Rajkot vs The Income Tax Officer, Ward-2, RajkotITA 679/RJT/2026[2020-21]Status: Disposed9 Oct 2026AY 2020-21
- Waghire College Saswad, Pune vs ITO, Ward 14(5), PuneITA 2867/PUN/2026[2019-20]Status: Disposed9 Oct 2026AY 2019-20
- Waghire College Saswad, Pune vs ITO, Ward 14(5), PuneITA 2866/PUN/2026[2019-20]Status: Disposed9 Oct 2026AY 2019-20
- Waghire College Saswad, Pune vs ITO, Ward 14(5), PuneITA 2865/PUN/2026[2019-20]Status: Disposed9 Oct 2026AY 2019-20
- Waghire College Saswad, Pune vs ITO, Ward 14(5), PuneITA 2864/PUN/2026[2018-19]Status: Disposed9 Oct 2026AY 2018-19
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