The ITAT allowed the appeal and quashed the penalty imposed...

The ITAT allowed the appeal and quashed the penalty imposed under section 271B for failure to get accounts audited under section 44AB, holding that the assessee was an authorised dealer/agent selling principal's milk products for a fixed commission and thus provided services on behalf of the principal. The Tribunal found the assessee's explanation as to the business modus operandi was improperly rejected by the lower authorities and, applying consistent precedent, held the penalty untenable. The ITAT set aside the CIT(A)'s confirmation of the penalty and directed the AO to delete the levy; the appeal by the assessee was allowed.

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