2026 (8) TMI 617

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....sing out of the confirmation of penalty levied u/s. 271B of the Income Tax Act, 1961 (hereinafter referred to as 'the Act') relating to the Assessment Year 2019-20. 2. Brief facts of the case are, the assessee is an individual and working as an agent of Surat District Co-operative Milk Producers Union Ltd, popularly known as SUMUL Dairy. The assessee was selling the milk pouches of 500 ml and earning the commission income from such sales to the end customer. The assessee earned commission/trade discount from SUMUL Dairy of Rs. 5,36,844/-. The assessee deposited of Rs. 1,15,83,240/- during the year which was from the receipt of Milk Pouches sold to the regular customers on retail basis. The assessment was reopened and a notice u/s. 148 of....

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....hreshold limit and hence, your contention of levying the penalty u/s. 271B for non-audit of books of accounts is illegal. Therefore, on the basis of legal and factual position of the case and the details/documents/materials filed on your records there is no escapement of income as well as no taxable and hence, considering the above settled lawful position and circumstances of the case, I have once again to request you to drop the penalty proceedings under section 271B of the Act taking lenient view and oblige." 2.2. Above submissions were considered by the AO and held that since the turn over is above 1 crore. The assessee ought to have get her books audited u/s. 44AB of the Act and failure of the same imposed penalty of Rs. 57,916/- u/s....