2005 (4) TMI 243 - AT - Income Tax

Summary

The appeal was against the levy of penalty under s. 271B of Rs. 20,155 for asst. yr. 1997-98. The AO imposed the penalty as total receipts exceeded Rs. 40 lakhs when interest income was included. The ITAT held that the penalty was not justified as the interest income was not part of business income and the assessee believed audit was required only if turnover exceeded Rs. 40 lakhs. Penalty deleted, appeal allowed.