https://www.taxtmi.com/caselaws?id=759135 ITAT Delhi quashed penalty u/s 271B for failure to get accounts audited. The tribunal held that the relationship between Mother Dairy and the assessee was principal-agent, not principal-to-principal as claimed. The assessee's turnover consisted only of commission from sales of dairy products, which was below the Rs. 1 crore threshold under section 44AB. The tribunal applied CBDT Circular No. 452 regarding kachha arahati, ruling that only gross commission should be considered for section 44AB purposes, not total sales effected on behalf of principals. The penalty was therefore not applicable. en-us Wed, 11 Sep 2024 00:00:00 +0530 Wed, 25 Sep 2024 08:01:35 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=759135 ITAT Delhi quashed penalty u/s 271B for failure to get accounts audited. The tribunal held that the relationship between Mother Dairy and the assessee was principal-agent, not principal-to-principal as claimed. The assessee's turnover consisted only of commission from sales of dairy products, which was below the Rs. 1 crore threshold under section 44AB. The tribunal applied CBDT Circular No. 452 regarding kachha arahati, ruling that only gross commission should be considered for section 44AB purposes, not total sales effected on behalf of principals. The penalty was therefore not applicable. Case-Laws Income Tax Wed, 11 Sep 2024 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=759135