ITAT deletes section 271B penalty when 271A already imposed for non-maintenance of books of accounts

ITAT Mumbai held that penalty under section 271B cannot be levied when penalty under section 271A has already been imposed for non-maintenance of books of accounts, directing deletion of the 271B penalty. The tribunal also deleted penalty under section 271(1)(c) for concealment of income particulars, finding no variation between returned and assessed income. The assessee had filed return declaring total income of Rs. 6,57,615 with deductions of Rs. 15,970 under Chapter VIA, which was accepted by AO without variation. Both penalty grounds were allowed in favor of the assessee.

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Issues Involved:
The appeal challenges the ex parte order of the Commissioner of Income Tax (Appeals) regarding penalty levied under sections 271B and 271(1)(c) of the Income Tax Act, 1961 for the Assessment Year 2016-17.

Issue 1: Penalty under Section 271B
- The assessee challenged the penalty levied under section 271B for failure to maintain books of accounts and get them audited.
- The Assessing Officer (A.O.) initiated penalty proceedings under sections 271A and 271B.
- The assessee contended that penalty under section 271B cannot be levied when books of accounts are not maintained, citing relevant case law.
- The Tribunal held that once penalty under section 271A is levied for non-maintenance of books of accounts, penalty under section 271B cannot be imposed.
- The Tribunal relied on various High Court decisions supporting this view and directed the A.O. to delete the penalty.

Issue 2: Penalty under Section 271(1)(c)
- The appeal challenged the penalty imposed under section 271(1)(c) for alleged concealment of income particulars.
- The A.O. levied the penalty based on alleged concealment of income by the assessee.
- The assessee argued that there was no variation between the returned and assessed income, thus no concealment existed.
- The Tribunal held that if the returned and assessed income are the same, penalty under section 271(1)(c) cannot be imposed.
- The Tribunal referred to a precedent and directed the A.O. to delete the penalty under section 271(1)(c).

Separate Judgement by the Judges:
- The Tribunal passed a consolidated order for both appeals, with detailed reasoning and citations of relevant case law.
- The Tribunal provided a comprehensive analysis of each issue, considering the arguments of the assessee and the Departmental Representative.
- The Tribunal emphasized the legal principles governing the imposition of penalties under the Income Tax Act and provided clear directives to the Assessing Officer regarding the deletion of the penalties in question.

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