Appeal successful: Penalty under Income Tax Act vacated for non-compliance

The Tribunal allowed the appeal, vacating the penalty imposed under section 271B of the Income Tax Act, 1961 for the Assessment Year 2017-18. The penalty of Rs. 1,50,000 was imposed for non-compliance with show cause notices, but the Tribunal found the penalty unsustainable based on the facts and circumstances of the case, accepting the assessee's explanation as eligible for protection under section 273B for reasonable cause for failure.

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Issues involved:
The appeal challenges the penalty imposed under section 271B of the Income Tax Act, 1961 for the Assessment Year 2017-18 by the National Faceless Assessment Centre, Delhi.

Summary:
1. Assessee's Grounds: The assessee, engaged in retail trading of Amul Dairy Products, challenged the penalty, arguing that he was not liable for Tax Audit and that the services provided were only as a courier, not falling under section 44AB of the Income Tax Act, 1961.

2. Assessment Proceedings: The Assessing Officer completed the assessment accepting the income declared by the assessee but initiated penalty proceedings for failure to get accounts audited under section 44AB.

3. Penalty Imposition: The penalty of Rs. 1,50,000 was imposed for non-compliance with show cause notices, leading to the appeal before the NFAC, Delhi.

4. Appellate Proceedings: The CIT(A) confirmed the penalty, rejecting the assessee's arguments regarding being an agent of Amul and the first year of business ignorance of section 44AB provisions.

5. Tribunal Decision: The Tribunal considered the reasonable cause for failure under section 273B, accepting the assessee's explanation as eligible for protection, vacating the imposed penalty. The Tribunal found the penalty unsustainable based on the facts and circumstances of the case.

In conclusion, the Tribunal allowed the appeal, vacating the penalty imposed under section 271B of the Income Tax Act, 1961 for the Assessment Year 2017-18.

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