ITAT allowed the appeal, set aside the penalty under s.271B and...

ITAT allowed the appeal, set aside the penalty under s.271B and held the requirement to furnish an audit report under s.44AB inapplicable. The Tribunal found the assessee's activities constituted mutuality: all transactions were exclusively with members, reported under GST, and the AO had accepted returned income on that basis, establishing absence of "business or profession" income. Consequently s.44AB's audit mandate did not apply and penalty for non-compliance with that provision could not be sustained. The CIT(A)'s confirmation of the levy was overturned. The decision expressly rejects characterization of the transactions as business dealings and restores relief to the assessee.