Consultancy fees claimed as business expense-can tax disallowance rest on survey suspicion despite invoices, contracts and bank trail? Appeal dismisse...
ITAT allowed the assessee's appeal and deleted penalty levied u/s 271B. The assessee, an individual engaged in wholesale tea trading, contended that no books of account were maintained, hence the requirement of audit u/s 44AB and consequent penalty u/s 271B could not arise. Revenue asserted that books were maintained but failed to produce cogent evidence to substantiate this claim. Relying on HC precedent holding that s.271B is inapplicable where no books are maintained, ITAT held the penalty unsustainable and decided the matter in favour of the assessee.
ITAT allowed the assessee's appeal and deleted penalty levied u/s 271B. The assessee, an individual engaged in wholesale tea trading, contended that no books of account were maintained, hence the requirement of audit u/s 44AB and consequent penalty u/s 271B could not arise. Revenue asserted that books were maintained but failed to produce cogent evidence to substantiate this claim. Relying on HC precedent holding that s.271B is inapplicable where no books are maintained, ITAT held the penalty unsustainable and decided the matter in favour of the assessee.
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